R* has indeed confirmed that it will take place is Los Santos/San Andreas. They also said this will be their biggest (aww yeah!) and most ambitious game that have ever made (or maybe just GTA game).
So that is awesome, because what I wanted from the next GTA game was it to be as big as San Andreas (now possibly bigger!), and it seems from the trailer some of the crazyness is back. It hints at it anyway.
Can't wait to see more info.
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