My 2-cents: I’d happily forfit graphics/physics for a limited-player split-screen ‘versus’ online version of a playable game (sorry for the mouthful). An example of ‘playable’ is something like the Modern Warfare series – not too crowded, plenty of spots to hide but always vulnerable.
There is nothing fun about having a friend over for an offline 2-player splitscreen on the PS3, especially when they don’t know how to play (I know, shooting them in the back of the head while they’re staring at a wall is fun the first 3 times but then…). Opening it up for others to join the splits-creen would give an experienced player something to do, and an inexperienced player a chance to get a scalp. :)
Considering there’s currently nothing in this market I’m surprised someone hasn’t produced the equivalent of Halo for the PS3… and please don’t bring up Warhawk or Resistance 2.

But i agree games need to have splitscreen (2-4) online and off! it would be nice for them to add this to games like MAG which deal with only online play! i’m upset that no games on the ps3 have pulled a halo and done this and i’m still waiting for it!

Shooters might just be a bit of an outlier here, most other genres do have a heavy emphasis on same console multiplayer, and have been very successful because of that. But the culture of shooters seems a lot more centred around online, most likely due partially to historical reasons (quick, name a PC shooter with split screen multiplayer), and partially to the sweet spot for a fun match (particularly a fun team match) just being >4 players.

Nearing the top of the gamer target demographic for age, I find myself getting games that my friends and I can play in the same room. Mario Kart Wii is one as well as Smash Bros. It’s also nice that I can play against them and them only if I choose online. Because like Allen said, it’s no fun being destroyed by hordes of 14 year olds. And the joking/eating/drinking is what makes up part of the fun.

Also, I would gladly play Perfect Dark or Golden Eye on N64 over MAG any day of the week.

I’ve been told the sales numbers don’t back it up. I’m not certain that’s not a belief of those calling the shots, rather than a fact, but it’s a genuine concern I’ve heard voiced many a time.

Basically, shelf space and box art at Walmart are big sellers. Huge. An ok-looking game that has great game play just doesn’t shine in that situation.

I had a bunch more written here, but I don’t want to tip my hand too much re: NDAs. But you folks seem to have the general idea.

Oh, and re: social networks. That’s a beers conversation.

On consoles, it’s a lot harder. More casual gamers are probably not going to use headsets, and certainly won’t use keyboards. On the PS3 the matchmaking and friends features are really rough, and on the Wii they’re nonexistent.

It would be awesome if they could find some way to matchmake gamers based on the social networks they already have. Since we’re casuals none of our friends might be online, but the system could try to match us with people our age, with similar interests or professions. Then hardcore 14 year olds can play with hardcore 14 year olds, and casual old fogies can play with casual old fogies.

I didn’t enjoy any of my time with online/random gaming, but I suspect that no one has figured out how to connect people well. Twitter is an example of a forum where the connections become real. In fact, basing it on twitter connections may just be worthwhile.

Most of the PC/XBox/PS3 gamers I know, however, worry a lot more about the immersion factor and shiny things. Those same gamers love the split screen some of the time, and the immersion for their deeper gaming time. They all have a lot more free time than I do, and spend a lot more hours gaming by themselves. I suspect that they are a huge market too.

I’ll do disagree, though, about the graphics vs. split screen priority. For something that focuses on the single player game like Uncharted or Bioshock, I see the challenge. For primarily multiplayer games, though, I don’t think the graphics matter nearly as much. When you’re laughing and joking and drinking with friends on a split screen, the immersion factor doesn’t contribute nearly as much to the fun as the gameplay does.

I mean, freaking Mario Kart does fine on 1/4 of a Wii, which is what, 33Mhz?