Falco ranks 22nd out of 41 on the official tier list, near the lower half of the B tier, a significant drop from his 4th out of 26 and 7th out of 38 positions on the Melee and Brawl tier lists, respectively.
Falco retains his strength of having an above-average on-stage game, as he possesses a rather powerful and formidable comboing game in his repertoire.
However, Falco has some major issues with his survivability, which compose most of his weaknesses. He is among the lightest characters in the game (he weighs as much as Lucas, Pikachu, and Pit), and is therefore easy to knock off the stage horizontally. Additionally, his recovery continues to be one of the worst in the game; this is due to a few factors, including a very low air speed, an extremely fast falling speed, and his two recovery options, Fire Bird and Falco Phantasm, not providing enough distance.
In addition, other characters have been buffed in Project M to the point where Falco's matchups are not as favorable as they were in Melee.
Given that Falco was among the best characters in Melee however, and has transitioned better than other Melee top tier characters (such as Jigglypuff) he remains a significant threat to most of the roster.
Changes from Melee to PM
Falco was slightly nerfed overall in the transition from Melee to Project M. He was reverted to become a clone of Fox again, rather than a semi-clone (as he was in Brawl). While he gained situational options from his Brawl incarnation, he lost a fair amount of his camping prowess due to the damage decay of lasers. Additionally, the strong hitbox of his down aerial now lasts less than half of its duration from Melee, forcing Falco to time his down aerial far more precisely than he had to before to approach, pressure, and KO with it.
Overall, Falco is still very strong and has the tools to take on any character. However, he is less effective in the metagame because he must now contend with not only his nerfs, but the prevalence of more floaty characters that he cannot combo as easily.
Up to date as of version 3.6.
In competitive play
Falco has three new recolors for his default costume; a sky blue one, a pink one loosely inspired by Kat Monroe from early Star Fox titles, and a purple one inspired by his rival Panther Caroso from Star Fox Assault.
Z-Secret Costume: Star Fox Adventures Falco
R-Secret Costume: Star Fox Assault Falco