The MMO that Nickelodeon is unveiling this September is about the pseudo-anime TV show Avatar: The Last Airbender. Nickelodeon says its recently-wrapped Season 3 finale was its highest-rated TV show ever and they want to carry on with a MMO and Live Action Hollywood Film! 
M. Night Shyamalan is making a live-action movie called “The Last Airbender” based on the series, to debut in July 2010. With Avatar interest at an all-time high, Nickelodeon seems to have decided the time was right to make an MMO that serves as a “prequel” to the TV series.
Regardless of how you feel about Nickelodeon cartoons, this is actually an immensely cool idea — when Nickelodeon re-airs episodes of Season 3 in the fall, fans tuning in will get episode-specific hints from the TV show about unlocking things in-game. Having a multiplayer online game that runs concurrent with a TV experience is a great way to encourage players to be more involved with both game and show, I think.
Full announcement follows with the important stuff highlighted 
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NICKELODEON UNVEILS NEW AVATAR MULTIPLAYER ONLINE GLOBAL GAME IN SEPTEMBER
Gaming Event Continues Momentum Following Highest-Rated Series Performance Ever, the Avatar Season Three Finale
NEW YORK–July 25, 2008–Fresh off of its highest-rated performance ever on TV, Nickelodeon will treat Avatar: The Last Airbender fans to a unique experience this September with a brand-new, multiplayer global online game. In the game, Avatar: Legends of the Arena, which will serve as a prequel story to the series, players can create their own Avatar character and test their skills against players from around the globe in several 3D online arenas. Each game level will introduce and unlock new content, challenges, custom character outfits and more on an ongoing basis. The global game will live on a dedicated website http://www.avatarlegends.com and the beta version of the game http://www.tinyurl.com/5j6j6j* will be unveiled at Comic-Con International in San Diego on July 25.
“The launch of this multiplayer online game gives Avatar fans the opportunity to immerse themselves in the storylines during and beyond its tenure on-air,” said Jason Root, Senior Vice President of Nick.com. “This property has always had a deep online connection with its audience and the game offers a natural extension of the franchise to keep fans engaged with the property indefinitely.”
Each 3D online arena within the game will host battles featuring up to four players at a time, but combat isn’t the only focus of the experience. Players will also be able to engage in role play, building their characters through training and arena duels. As players advance, they can upgrade their characters, unlock new bending moves, and acquire outfits and other exclusive equipment to make them the envy of others.
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