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I think there are more console owners with friends than console owners with internet connections. Therefore, I think local multiplayer is more important. I understand the plight of people moving away from all their friends for work and/or school, and thus preferring online play to keep in touch, but that's still a minority and should never replace local multiplayer.

I think 4 player splitscreen is more fun than 20+ player online in any game, even MMOs.