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Nintendo being out of touch with the consumer, which has been oh so common over the last few years. I can go grab Halo 3 and play some local co-op with friends. I can then kick them out of my house and play some online co-op.

Yes. Its possible to have both online and local co-op in your videogame.

Poor/lazy game design. While SM3DW itself may be brilliant, excuses like this are beyond stupid. The higher ups at Nintendo are stuck in the past. I think its time to look to the future.