That it is. The best part of gaming is sharing the experience. Playing online with friends is one thing. Playing with your buddy next to you is quite another. That's what made gaming for me back in the day before all this online gaming explision. Could you imagine playing online while your buddies are with you in the same room? That's what MS needs to address here.
I don't mind paying for Xbox Live as it's much faster than the PSN for me (there was another thread about this that "stated" PSN speeds vary based on where you're located geographically - so this may not be the case for everyone) and I use features like group chat and the new party system practically every time I turn on my 360. It just sucks that two people on the same Xbox can't do this at once without having to pay twice.
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