Paramount officially ended development on the highly anticipated Avatar: The Last Airbender AAA RPG known by its working title Ice Wars, which was announced in late 2024 with a planned release window of 2027/2028 [1, 2]. The game was being developed by Saber Interactive, the studio behind Warhammer 40,000: Space Marine 2, and was set to introduce a new Avatar story thousands of years before the original series [1, 2].
By fall 2025, when Paramount Games Studio was formed after the merger of Paramount and Skydance, the Avatar RPG was reportedly not in production [1, 2]. "That's a project that wasn't in production when we came in. We didn't start this iteration of Paramount Games until last fall, after the Paramount Skydance merger," said Shawn Kittelsen, senior vice president at Paramount Games Studio [1].
Paramount made the decision not to continue development on the RPG after the merger [1, 2]. Kittelsen added, "That game was not in production. It doesn't mean you won't get a AAA Avatar game at some point, but it might come in a different iteration," indicating the possibility of future Avatar titles of a different form [2].
This situation contrasts with another property affected by the merger, Teenage Mutant Ninja Turtles: The Last Ronin, which ceased development before the merger but continued under PlatinumGames, while the Avatar RPG did not move forward under Paramount [1].
Despite the cancellation of the Avatar RPG, Paramount continues to back Avatar Legends: The Fighting Game, which was delayed from its original July 2 release to July 23, 2026, and has been attracting growing fan interest [1, 2].
Paramount’s next concrete step in the Avatar gaming franchise is the release of Avatar Legends: The Fighting Game scheduled for July 23, 2026 [2].