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Nuvendil said:

Well that's why I said that if it were a prequel it would be doomed to a bittersweet ending since the Hero did not yet exist.  Such a story would almost certainly have to take place during the fall of the lower realms when everything first went to crap.  Could still be cool and definitely a break from tradition for the story to end with evil defeated only temporarily and the world still wrecked and people fleeing to the sky.  It would be like having a game set during the end of the Second Age of Middle Earth during the War of the Last Alliance.  A victory, but a bittersweet one that is ultimately just a respite.  

But I am leaning towards the story being either set after all the current Zeldas or being set during the original founding of Hyrule after Skyward Sword.  

All Zelda games end in a bittersweet manner as the's no way to end the Tri-force cycle I think you also misread the events before SS, people were sent to the sky to stop them from being collateral in the battle with Demise, it's not the ending you think it is as Hylia sent everyone to the sky before her and the Hero go on to defeat Demise and lock him away. The ending would not really be any different from any other Zelda game and in a way would be similar to OOT with Ganondorf only being sealed temporarily, what gives the endings more meaning and context is not the endings itself but other games in the series, for example WW changed the perspective of the ending in OOT making it go from a great triumph to a bittersweet victory.

I'm going to go and guess that the new game is in the WW timeline as its the most technically advance timeline, in the walkthrough with Aonuma and Miyamoto when they showed the map on the gamepad the were several bodies of water which could highlight Hyrule resurfacing as new land after a long time with the land reshapen from being flooded, the enemies in the walkthrough were also similar in artisitic design to an enemy in WW. The tower of the Gods theory also points to this, the blue tunic is very similar to what WW Link wore, the bow's design is exactly like WW and TP's with its lighter colour making it closer to WW's design.