What Rockstar said about "Universes"
SammiiDoogles
There are many references to GTAIII characters and brands (El Burro graffiti in LC for example) in GTAIV, but do any characters (other than Lazlow) actually exist within both 'universes'? Is that where Donald Love went? Did he hop dimensions into the GTAIV universe?! Plot twist!! Are the two universes completely separate? I understand it'd make almost no sense having two Liberty City's but is there any way we'll see characters from GTAIII return? GTAIV has some amazing characters, but some of the characters in the III era are just unforgettable.
Rockstar says:
El Burro is referenced as he was also referenced in GTA 1, so it felt appropriate that he should cross "universes" - the "universes" are the worlds interpreted at different definitions, 2d, 3d and high definition, so we felt brands and radio / back ground characters would exist in both, but 3 dimensional characters would not. This is the logic (as far as it could be considered logical) behind it - so no, we don't believe any GTA3 characters could exist in the GTA4 universe.
Now, while this question and answer wasn't specific to GTAV, I think what we can deduce from it is that what they said about GTAIV applies to GTAV as well - given that they are within the high definition interpretations of these fictional worlds.
That makes perfect sense if you think about it. Imagine if characters from the GTA 3 trilogy crossed over to this new interpretation of Los Santos, specifically CJ. Wouldn't it seem odd to think that the history CJ had with GTA: San Andreas' neighborhoods, the layout of the streets, the size of the map, all suddenly completely wiped out and replaced with a more broader city?
There are those, however, who say that this is the "bold new direction" Rockstar is taking by bringing back older characters. But that is unlikely given that they issued this statement a month after GTAV was announced with its trailer.
Of course, as mentioned by Rockstar, this does not apply to in-game branding and radio personalities. While we don't yet know for certain, I'm sure when Lazlow isn't busy playing rugby or making strippers cry, he's hard at work recording and producing radio content for GTAV.
On a separate note, you may have noticed we haven't yet seen many night time scenes from the game assets released so far on GTAV. If you want to get hyped, make sure you check out the video "NightFall" by Colin Rich - a "three minute tour of light through the City of Angels".