The game is the sequel to Lost Planet: Extreme Condition and Lost Planet 2 takes place on the same planet of E.D.N. III albeit before the events of the first two games. The game will take a more story-driven narrative approach to the campaign similar to the first game.
The game takes place long before the events of the first game, and hence the planet of E.D.N. III is still in an ice-age like environment rather than the tropical environment of the second game that occurs after the events of the first game. It takes place during the time of the first few human colonists on E.D.N. III sent there by the Neo-Venus Construction company or NEVEC, who later become the main antagonists for the series.