story identification - Film where a dropout takes drugs to fight demons

I'm looking for a weird film with people using drugs in order to access some kind of super power to fight evil.

My brain cannot put a title on it because the title was not related to the movie, and the only description of the movie I can think of is, "shooting up wasabi, fighting a frozen chicken meat demon, matrix dodges, gunfire, arachnids, the end of the world, a dog catches the ball, the end".

The dog catching the ball was an important part of the movie, or perhaps eating it.

I saw it around 2008. It was Direct to DVD, not a theater film, a Z movie. Psychedelic.

If Raoul Duke (Johnny Depp) from Las Vegas Parano took drugs after reading H. P. Lovecraft, with The Matrix playing on the TV, while he was petting his dog, the dream that would result would be the movie.

Answer

John Dies at the End. It's a bit later than you remember, being released to video on demand in 2012, in theaters in 2013, and then to DVD later that year.

David Wong, a slacker, recalls confronting a zombie skinhead whom he beheaded one year prior and wonders whether an axe that had its handle and head replaced over time is still the same axe. In the present day, he meets with small time reporter, Arnie Blondestone, to recount the supernatural events that plagued the small, undisclosed city David lives in.

.....

A frantic, incoherent John calls Dave, demanding he come over at once. At John's apartment, David finds a syringe containing a black-colored drug, oblivious to a bizarre creature only John can see. John tells David that the drug, "Soy Sauce", given to him by Marley, grants inhuman knowledge when taken, along with dumping the user in alternate dimensions and timestreams, as demonstrated by a past version of John calling present Dave.

.....

The two step through a portal to an alternate Earth. Disciples of Korrok greet them as "chosen ones" and present a brutal utilitarian society, where dissenters are horribly maimed by Korrok's monsters. The duo are brought before Korrok, who plans to devour them, absorb their knowledge to conquer their dimension. John tries to activate the bomb, but fumbles. Bark Lee [Amy's dog], who followed the two, grabs the bomb and flings himself into Korrok, detonating it and destroying the two of them.

Found with a search for film dropout takes drug to fight monsters