I hate it when this happens. Unless the actor passes away, I always find it awkward when an actor steps in for another for a sequel/franchise. So is the case for Iron Man II, with Don Cheadle replacing Terrence Howard as Jim Rhodes.
Don Cheadle Steps in for Terrence Howard on Iron Man Sequel
It looks like Terrence Howard's price was just too high for Marvel, as the studio has gone forward by replacing the actor with Don Cheadle.
While we remember it being Howard who looks at the Mark II and saying, "Next time," there will be no next time for the actor. Cheadle will play Jim Rhodes in the sequel to Iron Man, who fans of the franchise know becomes War Machine. As expected, Rhodes will play a much greater part in the sequel.
Justin Theroux is currently writing the screenplay.
Though Howard is out, Marvel will likely work harder for the return of Robert Downey Jr. and Gwyneth Paltrow.
After experiencing some Marvel drama of his own -- over price as well -- Jon Favreau will come back to direct.