Yes it does, you need to go to 'system' on the multi player menu then onto 'split screen'.
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You can play any online game without Xbox live.
no, the internet is only needed for full use of all the PS3 features and Games can be played without going online
you can't play two player campains but you can in zombies and going against each other
You'll need to defeat the Elite Four again and they'll roam by their selves without manually going back to Route 7.
yes of course you do if you are going to be online you need internet