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Yeah, I've known for awhile now that it wasn't going to have split-screen.
The LAN was probably denied because Nintendo doesn't want to start a pattern of publishers using LAN instead of split-screen. (my unconvincing guess right there)

But, who knows though?

Edit

Fatal Frame Fanboy Says:

February 7th, 2009 at 10:54 pm

TBH though, I think everyone would rather see the game get delayed a month or two if it allowed High Voltage to add in split-screen. Wouldn’t you all agree?

I agree with this guy.