Obsidian Entertainment negotiated the creation of a game based on the Avatar 2 universe back in 2010
Gamepressure recently published an interview with Obsidian Entertainment CEO Feargus Urquhart. It mainly discussed the key points on the plans for the future of the studio after the successful last year, but we are more interested in fragments from the studio's past.
Urquhart said that in the mid-2010s, Obsidian was in talks with James Cameron and 20th Century Fox to create a game based on the movie Avatar 2. This was before the official presentation of Avatar 2: The Waterway and long before Obsidian Entertainment was acquired by Microsoft.
But then the studio never agreed to develop the game, and later, after Alien was canceled, it was on the verge of collapse. The lifeline for it was the "Hail Mary", the money for the development of which Obsidian raised in a Kickstarter campaign.
Source: PC Gamer