In the final scene of Reality, is Luciano actually inside the Big Brother house? Or has he completely lost his grip on reality while watching television?
I think that it is left as being ambiguous as we can see with many of the film endings today. One may hint that the maniac laughter and his general behavior may hint towards a certain losing of the mind, and hence all of it not being real. But there is no such evidence to indicate that it may have happened so. May be it was for real, and he was always mad by then. Could be interpreted as anything with a good argument.