Falco is generally considered better than Fox. Although his recovery is one the worst the game, Falco has a chaingrab on almost the entire cast that deals a quick 45%, and can lead to a dair spike (downwards aerial attack).
Since Super Smash Bros. Melee, Falco has been "Luigified", and has many key differences from Fox.
Falco's blaster can shoot repeatedly, and its shots cause enemies to flinch. However, it is much slower than Fox's so it can't be abused.
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Falco Phantasm
Dashes forward, damaging anyone he runs by. Good for a surprise attack through multiple enemies at once as it will deal all of them good damage. Can be used to recover big horizontal distances. Be careful to not dash over the edge with it, however, as it leaves Falco unable to recover on the way down. It can also be cancelled by pressing the special move button in the middle of the dash.
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Fire Bird
A fiery dash attack. It doesn't cover as much ground as Fox's version, but can still be used to recover. Unfortunately, it is rather easy to intercept, especially with the charging time.
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Reflector
Deflects any projectile. Falco kicks his reflector forward, knocking anyone that gets hit off balance. Good attack to use in a clump of enemies.
Taunts
Wii Remote + Nunchuk
Wii Remote (sideways)
Wii Classic Controller
GameCube Controller
Taunt
He drop-kicks his reflector over his shoulder, bounces it off his heel, catches it again, and says, "Piece of cake."
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He holds out one wing, raises it, and says, "Don't try me."
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He spins around and says, "Hands off my prey."
Press it for only a split second when on Lylat Cruise or Corneria to hear a radio conversation between the other members of Team Star Fox (and sometimes, Team Star Wolf).
Final Smash
Landmaster: The controls for riding Falco's landmaster are the same as Fox. The difference is that it is less powerful than Fox's landmaster, but you can stay more time in the air so try to figure out how to use this characteristic. Fly your enemy off the top of the screen while he is on top of the landmaster and you will be able to score a quick KO.