Yes. It is dying.
Games companies want more money. Lack of split screen support = people being more inclined to play games online if they want multiplayer. This means every person playing needs a copy of the game and console, and in the case of 360, a gold subscription.
There's still the occasional few split screen games, but most of them are limited to 2 players, instead of 4.
Unfortunately these days if you want local multiplayer the majority of the time you need to go casual, via the Nintendo Wii's games library, or the Guitar Hero/Rock Band franchises.
Games companies want more money. Lack of split screen support = people being more inclined to play games online if they want multiplayer. This means every person playing needs a copy of the game and console, and in the case of 360, a gold subscription.
There's still the occasional few split screen games, but most of them are limited to 2 players, instead of 4.
Unfortunately these days if you want local multiplayer the majority of the time you need to go casual, via the Nintendo Wii's games library, or the Guitar Hero/Rock Band franchises.