Red zone is a random area that gets firebombed. To discourage camping is my guess.
I wish the map stayed bigger for longer, I wouldn't mind spending more time in a specific town going house to house for gear. It seems that even if I parachute somewhere in the middle, I still spend most of the game running for my life to stay in the play area. If I end up in a town I have time to hit 2 or 3 houses on the outskirts while still being somewhat careful, before I have to ditch that town an keep moving inland
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