Corrected entry: At the end of the film the Iron Giant is persuaded by Hogarth to rescue the town by intercepting the nuclear bomb and in the process sacrifice his life. The Iron Giant flies straight into the path of the missile. The reason the missile was launched was the Iron Giant himself - he was just about to destroy a huge navy ship when he was distracted by Hogarth. An electric pulse discharges in the distance of the ocean as he misses the ship and the town temporarily is lit up by the flash. Therefore why didn't the Iron Giant simply use one of his sophisticated weapons to intercept the missile?
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Correction: He was damaged in his original landing. His programming was a little messed up. He might not have been able to figure out how to activate his weapons again in time before the missile hit.
Grumpy Scot