Massive Entertainment in Malmö, southern Sweden, will develop a new game placing gamers on Pandora, the fictional planet where Avatar – the highest-grossing film of all time – is set.
Massive will employ around 100 new staff members at a recently bought building on Möllevångsgatan in south-central Malmö to work on the project.
Details about the game are scarce at the moment, but comments from Avatar producer Jon Landau suggest it will have an open world format, meaning users will be free to explore the main setting from the film.
"It is not about telling the story of Avatar, but about taking the experience from the film and making it possible in the game to explore the world of Pandora," Landau told Swedish business website 8till5.
The game will be released on both PC and consoles, and the studio will report directly to Avatar creator James Cameron, who is expected to play an active part in its development.
Work on the project has been secretly underway since last year, and the partnership between the studio and the Avatar producers could last as long as ten years according to 8till5, which suggest additional content may eventually be made available.
Four sequels to the Avatar movie are currently in the pipleline, with the last of the new films not due to be released until 2023.