If you're talking about the scene where the ice under him breaks, yes, I'm 80% sure he does. the screen gets all red(I think) and I'm pretty sure he talks about never getting to say goodbye and a whole lotta other stuff
I'm pretty sure Arvo stepped on a frozen lake/pond by accident while trying to search for Mikko, and the ice broke under him. He tried to get out but he couldn't, this led to his "death", not sure if he actually dies or not, the devs could somehow expand it further honestly.
