Rhodey (Don Cheadle) saves the President (William Sadler) before he's executed. Pepper (Gwyneth Paltrow) temporarily obtains powers after having Extremis in her body and kills Aldrich Killian (Guy Pearce). Tony (Robert Downey Jr.) decides to spend more time with Pepper and destroys the new suits of armor. He and Pepper undergo surgery: Tony has the shrapnel that's inside his body removed and also the miniature arc reactor that powers his suits; Pepper has Extremis removed from her body. Happy (Jon Favreau) wakes up from his coma.
Trevor Slattery/The Mandarin (Ben Kingsley) and the Vice President (Miguel Ferrer) are arrested. Harley (Ty Simpkins) receives from Tony a bunch of donations (food, a new "potato gun", a computer, etc). Tony narrates that even without his suits of armor, he will always be Iron Man. During the extra scene after the end credits, it's revealed that Tony has been telling his story to Bruce Banner (Mark Ruffalo), who's fallen asleep during the "session".
Character mistake: When Harley asks Tony what the light is coming from his chest, Tony responds "an electromagnet." Harley replies "What does it power?" An electromagnet is not a source of power. The arc reactor is the power source which powers both the electromagnet (to keep Tony safe from the shrapnel near his heart) and the Iron Man suit.(00:43:25)
Tony Stark: I've dated hotter chicks then you. Ellen Brandt: That's all you got? A cheap trick and a cheesy one-liner? Tony Stark: Sweetheart, that could be the name of my autobiography.
Question: Is this movie set in December 2012, six months after the events of The Avengers movie, or December 2013? The newspaper handed to Tony in the garage is dated December 24, 2013.
Answer:With the release of Endgame, it is now fact that the Battle of New York took place in 2012.
Chosen answer:Iron Man 3 is set in December 2013, but at no point in The Avengers that I can recall was it ever stated to be 2012; that's just the year it came out, not necessarily the year it was set, so in-film continuity would suggest the Avengers is set in 2013.
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Answer: With the release of Endgame, it is now fact that the Battle of New York took place in 2012.