[[WMG: Mike is not crazy]]
The Ancients knew that all librarians were helpful to Mike, and thus ordered Rita killed since she was a librarian.
So, why did Mike blank out and have LaserGuidedAmnesia? Either this is a side-effect of formerly having the embryo in his head, or Jack simply knocked him out before killing Rita.
[[WMG: Jack grew from the embryo]]
Because the embryo was planted in Mike, it has a special connection to him. It is possible that the pills that were supposed to destroy the embryo instead merely banished it, and it was able to grow afterwards.
[[WMG: Mike is crazy]]
The events of the first game were actually Mike having a stroke or some other mental problem, possibly caused by his new house. The house may have also simply been full of hallucinogenic mold/fungi. The reason why the librarian felt compelled to give Mike the pills was because she noticed him looking like he badly needed them as he wandered around town.
This requires an explanation of why Jack would continue to talk about the Ancients after Mike has perished. Well, dying from stabbing can actually take a while depending on where the stabbing happens, so Mike may simply be having a DyingDream of Jack saying those things and riding off.
[[WMG: Mike is crazy ''and'' the Dark World, Behemoth, Jack, etc. are real]]
The Keeper really was the Shapeshifter all along, and Mike was only hallucinating that she had a connection with the librarian. In reality, Mike has always been evil and therefore his dark world counterpart will be likewise.
Alternatively, because Mike has multiple personality disorder, he may have ''multiple'' dark world selves, of which Jack is one.
Alternatively alternatively, Mike does have multiple personalities, which is why his Dark World counterpart is the Shapeshifter, who has multiple ''appearances''.
* Alternately: The Dark World is real, Jack is the shapeshifter and Mike is as good a guy as he can be, but he's still crazy. The events of the first game damaged his mind.
[[WMG: Everything after the first meeting with the therapist in the second game is a dream]]
Except maybe for Mike Dawson's fate. I mean, many of the events of the late game seem unrealistic. The strong man actually ''liking'' Mike? That's a big clue right there.
* He ''does'' wake up in the therapist's office at the end.
[[WMG: Mike didn't kill Rita ''but'' the Dark World, Behemoth, etc. are not real]]
Jack is just a guy who is ''really'' good at sneaking.
[[WMG: The events of the first game are real, but in the sequel, Mike's crazy]]
While Mike extracted the embryo, its insertion still left permanent brain damage. That, combined with the massive trauma of the events of the first game would be an excellent recipe for crazy. This also explains the huge shift in characterization between games.
[[WMG: Mike Dawson didn't really die at the end.]]
Depending on how well the player does, he's very likely to still have a few "extra lives" at the end. Surely he can redeem them in whatever our world's afterlife is like, too...
[[WMG: Mike in Darkseed 2 is a white aged-up [[Anime/NeonGenesisEvangelion Shinji Ikari.]]]]
Hated by nearly everybody? Check. Has only one friend [[spoiler:that turns out not to be]]? Check. Poor relationship with parental figure? Check. Whiny, annoying, and wimpy? Check. Both protagonists in a piece of MindScrew? Check. He's pretty much Shinji as a white guy.
[[WMG: Mike Dawson is the player character from ''[[Creator/ZapDramatic Ambition]]''.]]
After the events of ''Dark Seed II'', Mike wanted to become a detective. He couldn't, because everyone in the town was either dead or hated him. So, he faked his death and fled to Canada under an assumed name (which we never learn) to become one. It would explain why the protagonist in that game appears to exhibit Dawson-like competence and charisma, and why (s)he wastes time instead of focusing on the matter at hand.