You can play the single player online yes.
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No, Dead Island is only available for online multi-player via. Xbox live or Playstation network.
Unfortunately, you cannot play split-screen on Dead Island. However, there is online co-op, system link/lan, and of course.. solo!
There isn't split-screen on dead island.
First, you go to the menu. Then access the settings and then switch to co-op. (this only works online.)
No. If you turn off the blood in Dead Island, Then you will loose a life.