Why does Avatar 2 need to make $2 billion? Film's cost and profit requirements explained

James Cameron's Avatar 2 has reportedly made a whopping $1.4 billion at the box office to date. However, the hefty amount made by the movie still hasn't helped it become profitable for Disney. It's been a little over two weeks since the movie was released, and many are wondering exactly how much Avatar 2 needs to make to be considered successful.

Avatar: The Way of Water enjoyed success at the box office last week, as the movie quickly became one of the top-grossing movies of all time. Interestingly, Avatar 2 now sits just behind Tom Cruise's Top Gun: Maverick, which made a whopping $1.488 billion worldwide. Cameron's flick has grossed $1.4 billion worldwide as of now.

Based on the patterns observed so far, it's safe to assume that Avatar: The Way of Water might just cross the $2 billion mark.

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Why does Avatar 2 need to make $2 billion at the box office?

Kate Winslet in Avatar: The Way of Water (Image via IMDb)

According to Deadline, the production budget alone for Avatar 2 is a whopping $460 million, and that's not even taking into consideration the marketing costs. However, James Cameron hasn't been generous enough to give out an exact number just yet.

In an interview in November 2022, James Cameron said that Avatar 2 needed to make $2 billion at the box office to be profitable. Cameron said:

"You have to be the third or fourth highest-grossing film in history. That's your threshold. That's your break even."

Since the cost of producing Avatar: The Way of Water is pretty high, the movie needs to make more money at the box office to break even. Cameron has three more sequels planned for the franchise, and these may only get green-lit by Disney if The Way of Water turns out to be profitable.

Interestingly, if the actual production cost of Avatar 2 is close to the numbers given by Deadline, this will make it the most expensive movie ever made, with it even surpassing Pirates of the Caribbean: On Stranger Tides, which currently sits at the top spot with a production cost of $379 million. This is even more reason for The Way of Water to make $2 billion at the box office.

Since the exact figures are yet to be revealed, it cannot be said with any certainty that Avatar 2 is the most expensive movie ever made. However, the information above was corroborated by a statement from Fox Media heir Lachlan Murdoch. After referencing the previous Avatar movie that had a budget of $1 billion, Murdoch said that the sequel would be one of "the most expensive movies of all time."

As for The Way of Water touching the $2 billion mark at the box office, we'll just have to wait and see. However, considering that the movie has seen exceptional success just over two weeks after its release, it has a strong chance of crossing the mark.