Shin Megami Tensei X Fire Emblem will take place in modern times, according to producer Hitoshi Yamagami.
Partially at least, according to the producer.
"I’ve wanted to create a Fire Emblem in our times, in the real world," he told Hobby Consolas via Nintendo World Report. "Imagine a Pegasus that comes from the sky and lands on Building 109 of Shibuya, Tokyo. I always thought that would be incredible.
“At the same time, I know it’s hard because of how Fire Emblem is. I visited many companies to express these ideas. When I went to Atlus, I was told that Shin Megami Tensei together with Fire Emblem is what I wanted. So, I soon said that to Intelligent Systems and started this very special collaboration.”
It could still have a medieval setting to it, so don't worry too much.
Shin Megami Tensei X Fire Emblem is slated for Wii U and is still without a release date.