You sunk my...wait, what?

I'm currently watching a very long trailer for "Battleship".  The movie based on the Hasbro game.

This game.

I have been confused since the beginning about how in the world they were going to turn red and white pegs into a movie. 

Now I am totally confused as to how this movie can be said to be based on this game at all.  Oh- ok I guess there is a battleship in it.  Uhm...and... I've got nothing.

If you haven't seen it, here is a shorter preview. Someone tell me how this ties in with the game at all, cause I just don't understand it at all.

-Kristen