Why on earth would he continue to hold the knife? In the real life version of Rock-Paper-Scissors, gun always beats knife. Any fool can tell you that.
According to NBC 4 News:
NYPD officers shot and killed a man with a large knife who they were chasing near Times Square Saturday afternoon. Police said the man, who they observed smoking marijuana, became belligerent when officers approached him. He was shot dead after he threatened officers with the knife, police said. The man had no identification on him, officials said. No officers were injured in the incident, which took place over a number of blocks and ended with the shooting at 38th Street and 7th Avenue, an area generally crowded with pedestrians. Witnesses to the shooting described a chaotic scene in Midtown.
Warning: Video might be unsettling to watch.