Sega's recruitment posting reveals that the new Crazy Taxi will be a large-scale open-world game.
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That game needed splitscreen, all I ever want those games to do is be multiplayer locally.

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If I had to guess why it didn’t have split screen was the open world. My guess it streaming assets from two different places on a huge map was costly to do twice (memory wise). Atleast when it was designed/launched.

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