There are 3 type of damage, Physical, Mental and Social.
Physical: Hits are applied to the BODY Hit Boxes: Any damage that is done form a physical form. If a player is shot or stabbed, that is physical damage. As is a Psychic using a Telekinesis to slam a player into a wall. The type of attack does not set the damage type.
Mental: Hits are applied to the MIND Hit Boxes: If the player would receive damage via a mental attack. Psychic and other mental damage would be applied here.
Social: Hits are applied to the SPIRIT Hit Boxes: Any time the player enters in to social combat and they would take damage it would be social damage. Social damage is not fatal damage, it does not heal like other damage.
Damage is easy to calculate in Core Worlds. The number of net hits pass what is need is damage. A character has 3 hit boxes type. The types are passed on the 3 main core attributes. Body, Mind and Spirit. These are called Hit boxes. Each hit box has 10 damage boxes. Each damage box has a number of hits equal to the core attribute score. Using James again, he has the following attributes. Body of 2, Mind of 4 and Spirit of 6.
If James took two hits to the body he would be on the verge of being knocked unconscious. If he took 2 more point of damage, for a total of 4 hits to the body he would fall unconscious. If he took 8 more hits he would be dead.
If James took the same 2 hits to his mind he would be able to take 3 more hits before he was knocked unconscious. If he took four hits to his mind that would render them unconscious if he took six more hits that would kill him.
James could offset the damage he receives by taking a condition in place of the damage. If the damage received would be beyond his core attribute then he would have to take a long condition. If it’s under his core attribute he could take a short condition.
If James was to take 4 hits to the body he would have 2 conditions. He can choose to take the conditions or be out of the fight. He is not dead, just out of the fight. If James took six more hits to the body than his character would be dead. The storyteller will make the call. If it was a boxing match he could have been just knocked out. If it was in deep space and was taking hits due to lack of oxygen, well, he is most likely dead.