Algol drops the two spirit swords as he drops to the ground, defeated by Talim. Talim, being the sweet girl that she is, tells him that she doesn't place any blame on him for his past actions, nor will she question what the swords represent. "However," she continues "they threaten the very fabric of nature. So I'll return them to their true forms."

Talim realizes that Algol is troubled, and tells him that she will also return him to the form he once was. As Algol raises his head to meet with Talim, he becomes stunned, finding that she has resurrected his son, Arcturus. As the father & son join hands the screen fades to white and Talim's voice is heard. "Oh wind, I beg of you, bring peace and tranquility to all."

"The world will now return to its natural form and the cries of the winds have disappeared."

This ending is very debatable; on one hand, if taken at face value, it is possible that Talim somehow "restored" Arcturus from the dead. One another hand, she just could have simply created an illusion of him to try to ease Algol's passing. When Talim told him she would restore him, this may actually mean "taking away his immortality" (which is more like putting him to sleep rather than murdering him), and showing Algol an image of his son could have been used to make it easier for him to embrace dying.

Another theory is that Arcturus's appearance had nothing to do with Talim. Arcturus was either just a hallucination of Algol's, or his first glimpse of "another side." This would have a cultural reference to the Filipino belief that upon the moment of death, cherished people, whether relatives or friends who already passed on, would make an appearance. This illusion or anomaly is most likely attributed to 'Sundo' ('fetching' in Tagalog), wherein loved ones or relatives would fetch the about-to-depart soul from the earth (presumably to heaven), and is a popular setting among fiction stories involving the afterlife.

Personally I think the second one fits better with Talim, especially because it would be a cultural reference and the Soul Series is very good at bringing in culture. I only really have studied Talim's cultural references in-depth, but that is definitely my guess on what had happened at the end of Soul Calibur IV.

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