Question: If you beat Brain Andross on the Red Path, the "ghost" of James McCloud, Fox's father, appears and helps Fox escape the exploding base. What is the explanation for this? Is it actually the ghost of James? Was Fox hallucinating? Was James really alive the whole time? What happened exactly?
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Answer: There isn't really an agreed answer to this, and the game leaves it purposely ambiguous. It's entirely possible that James is just a figment of Fox's imagination. It's also possible that his spirit is guiding him or that he's secretly alive. So in truth, any answer would be pure, 100% speculation.
TedStixon