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Hate to break it to you but there is a drop in/drop out system, im playing this with the missus on the 360, it doesnt save progrress for the 2nd player or earn them achievements which sucks but single playeris saved, ive tested it just to make sure.
Getting sick of these "obviously for 2 people co-op games" like this and lego that either dont give or disable achcievements.
You might play this on your own but who honestly plays the lego games single player ?