Everyone one seems to assume that it is just a shooter that allows 256 players. I am sure with the 8 players squads etc. they will implement some restrictions. Maybe something more realistic like not the whole squad allowed to have sniper rifles? Until there are more details about what the game actually is we can't really say. As has been shown in several messages in this thread, there are ways to do 256 players. I don't know anything more than anyone else, but I am not going to just cry "LAG FEST!" until I see more details.
Wondering what most of the naysayers in this thread would be saying if we put "Halo 4" was announced with all the same features? Can see it now "Halo 4 is gonna have 256 players, 8 man squads etc. It is gonna so rock!"
Anyway, doesn't look like it's coming out anytime soon, unlike what this year old news has stated. We will probably hear more at THIS years E3 and they will say 1st Q 2010. Not sure why I am even commenting, as I am not interested in this or any other shooter, console or otherwise.
I am interested to see how it turns out though.