lol @ social strife.
Locations get selected primarily by what looks cool & what the engine can handle. Thats partially why FC1 got such good reviews - nobody had manage dense jungle quite like it before & it instantly made cryengine a name brand.
Once you've got you're environment you just drop a standard FPS scenario onto it. e.g. You need an evil corporation. Maybe a rebellion. And say some weapons of mass destruction. Maybe a natural disaster if you've got a physics engine to show off.
And if your dev studio is utterly useless on the creative front then you can always fall back on good old Nazis.
As for FC4 predictions:
Alaska & Antarctica are no good. Colour pallet is to narrow. Australia...maybe...I don't think they're going to try brown dust places again after the mediocre Africa thing.
Personally I'd do something slightly more Asia. It would have to be something nature-ish again though to really show off the engine & if you make it a fictional asian country you can mix & match between the cultures as needed. i.e. Nobody will notice if half the okes wear vietnamese hats but the architecture is japanese. Hell you can even throw in some Yakuza to keep reed happy with his social strife. hmm...maybe I should start a game studio. Seems like a better plan than:
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