We are thrilled to work with the world's largest comic book publisher to bring one of our most beloved PlayStation franchises, God of War, to comic book fans. As one of the most prominent names in the entertainment and comic book industry, we look forward to working with DC Comics in bringing God of War to a whole new audience.

The present day story is firmly set between God of War 1 and #@%!16
17#@%!. The flashback story starts when Kratos is 7 and is brought into the Spartan army, as Spartan children were, and continues to when he is over 30, married, and has to go on a mission to save the life of Calliope, his daughter. Events in the past completely inform the present day story.

As far as Kratos' nightmares go, without giving away too much, the entire present day story is his reaction to what happened in the first game. We don't show the nightmares but the are the reason he's after what he's after. We also get strongly involved with the Barbarian King, seen in games #@%!16
17#@%! and #@%!16
17#@%!. Kratos' battle with the Barbarian is what causes him to pledge his allegiance to Ares in the first place.

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Via IGN