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Technically Wander, dies, but its the common theory that the horned baby is himself reborn.

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Well that does make sense...But then they never get to be together and in love do they. Especially considering we play him in ICO, and there's no mention of her.

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It's also widely accepted that the main character of Ico is a descendant of the boy with horns from SotC. The proof is that horned boys being taken to the castle for sacrifice was tradition (meaning that it's been going on for a while) and that you aren't the only horned boy to go in... there are at least 45-60 other cages for horned boys. I think Ueda himself stated that SotC is a prequel at least 1000 years to Ico.

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Well then that's also something to consider. But as the baby grows, I still don't think they could ever be in love together. It's probably more likely that she raised him by herself in the secret garden, until she died. Perhaps he then crossed to the normal land...Although that bridge is now destroyed.
Seems like they both probably died off, but this isn't a world we live in, so there was probably some magic to assist.

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Yeah, that's a good point. Sort of how I feel about it. Have you heard this theory, though? It's got alot of hard evidence... Mono turns out to be the dark queen from Ico and the temple turns into the Queen's palace. The evidence for this is that there is architecture from Ico scattered in various areas of the SotC land. If given enough time, the canyon could erode, or someone could intercede, and fill the entire valley with ocean water (if you look at the Sotc map, it's surrounded by the ocean almost entirely. I love the theory, and I hope we get our answer in the next game.

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I don't like it much. I like the story how it is, if you pretty much just take it for what we're given. That Wander is reincarnated, or whatever, and that Mono is just Mono.
I also don't think we'll hear much more about it, since that Fuedo guy said something about how he views it as an interpretation. His idea of what happens is an interpretation, and we're supposed to kinda do the same thing. So it seems unlikely we'll see anything solid.
We may though