It takes place 17 years after the original. I imagine half of the ladies will be absolutely horrifying by then, perhaps unable to walk without stepping on their breasts.
Siegfried is almost 40. Sophitia's son is the new hero. The Soul Edge and Soul Calibur are now short swords but it's a gigantic mystery why. Also news is that they are apparently greatswords, as canon. I thought they were pretty much anything you wanted them to be, what with each character having their own version. I'm going to guess right now that the new Soul Edge and Soul Calibur are baby swords and also there's a crossbreed that is going to save the day through the power of balance (and maybe love).
Character creation is coming back but they aren't giving out any details yet. They've confirmed there will be "guest" characters but don't know who, which to me says they're eager to make the game stupid but they aren't sure how they're going to do it yet (I'm kind of bitter over the Star Wars nonsense).
It seems like a weird move for the series. Are they basically redoing the entire cast, with the exception of a few middle-aged characters? Is Sophitia's kid THAT great a character that it's worth throwing everyone else out?