Yeah they are from another dimension called Edolas. Which is kind of like the opposite of the normal dimension. Erza works for the council, Makarov has died and Fairy Tail is a dark guild. Happy and Charle(You will see her soon. She is another cat like Happy belonging to another dragon slayer.) Mystogan is the Jellal of Edolas. Everyone has the same faces but completely different personalities. There is also no magic in Edolas and everyone uses Magic Items instead.(Why Mystogan has staves)