The reason online gaming has also become such a staple is because most of us who played local multiplayer when we were younger are now older, busier, and spread apart.
Phil Spencer isn't entirely wrong, either, as most people in this thread are also referring to their younger years of playing local multiplayer, not recognizing that they are now most likely living away from their family and childhood friends, or are away at college, or any number of various situations that separates people. Online multiplayer became a staple when the convenience was slowly recognized as a way to somewhat combat how far apart we tend to grow as age sets in.
I miss local multiplayer, and I still love it, but it's also an old-fashioned sentiment. I agree the option would be nice, but it's just not really a "necessity" anymore in modern gaming. Add in the quality of system party chat in modern systems, and you can't punch your friends or knock the controllers out of their hands, but can make up for that with an extended length of extreme obscenities!
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