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Alright, since all we know about Reach is that it is a big, red planet, I have reason to believe that it takes place on Mars!
Call me a mad man, but I have proof that this is true, which I will talk about later.
See, I think that Reach is just another name for Mars. Since we are still limited to living on Earth, we are constantly "reaching" to get to Mars, improving our spacecraft and such. When we finally improve our technology, and get to Mars, some aliens attack us because they are running out of food at their home planet. I think this is how the game will play out.
This is the only theory that makes sense. The unknown planet "Reach" is actually just Mars!!!