Its not their fault... xbox can't handle current games, they would've had to decrease the graphics significantly. If you played this game on a next generation xbox, 3 or 4 player split screen would be fine.
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If Reach was any indication, they (MS, Bungie, 343, pretty much any 360 dev) don't really care about couch Co-op anymore. Or LAN. It's quite sad, but yeah, don't expect anything to be done about it. They'll happily sacrifice splitscreen play for better graphics, since the latter sells better.
That's not fair, most games still play fantastic with 2 players. 4 players with incredible graphics is simply just difficult to achieve on a 7 year old system.
That's why I'm saying they're willing to make that trade-off. With new systems, it'll be different, but you can't expect them to raise graphical capabilities with old hardware and still retain everything else about the game. One on one, though, developers would pick better graphics over splitscreen/LAN, that's just how it is. The real question is whether they have to make that choice, and with old hardware, they do.
The frame rate is ATROCIOUS when playing 3 or 4 player splitscreen. Really unacceptable in this day and age. Have they said anything about this issue atleast?
It's a console from 2005. They've had to reduce so much to get it to run in the first place. I know a lot of developers are frustrated that they have to cut their games down to play on "current" consoles.
"...Everytime I do it now I imagine the gnome screaming 'THE GNOME DOES NOT LIKE TO BE TOUCHED.'" - themagicpainman, on HL2 Ep.2's Little Rocket Man