It doesn't make you buy two games, whenever a new game comes out that my friend buys I'll just complete it at his house, not gonna buy the game myself. So why not add a split screen feature to it?
Because you'd have to render the same game twice at the same moment, that's why splitscreen isn't used as much lately. The company doesn't lose that much money on the splitscreen function itself. It's a hardware problem.
Split screen was most prominent when TVs were no bigger than a microwave, and now that everybody owns at least one giant flatscreen it's pretty much dead.
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