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I recall seeing something that suggested it was going to be an Eastern setting. Like China or India or somewhere in Asia that isn't Japan. People were theorizing it would come out with the release of whatever hardware they were releasing in China, as a launch title there. I think it would be cool.

Aside from that, I think Europe needs some more exploring. Australia would be really cool for the new species of Pokemon we'd see there. Lots of Kangaskhan, I imagine, and tons of poison types, but there's some really weird wildlife in Australia so if they didn't take advantage of that for new Pokemon it'd be a shame.