Xbox 360: Using Xbox Live Profiles for Local Multiplayer? Not Possible

No. Xbox Live profiles require an active internet connection and cannot be used for offline/local multiplayer on the same console.

How Local Multiplayer Works on Xbox 360

1. Sign in with Player 1's Xbox Live profile (or create an offline profile).
2. Press the Guide button on Controller 2 → Sign In → Create Guest Profile.
3. Repeat for Controllers 3 & 4 (max 4 players).
4. Launch the game. The game's lobby will show "Player 1," "Guest 1," "Guest 2," etc.

Key Limitations

• Guest Profiles: No Gamerscore, no achievements, no saved progress tied to them. Progress stays with Player 1's profile.
• Game Support: Not all games support 4-player local. Check the case/box for "2-4 Players" or "4 Players Local."
• System Link: For LAN play with multiple consoles, each console needs its own profiles (Live or offline).

Workaround for "Shared" Progress

Create a second offline profile (Settings → System → Memory → Profiles → Create Profile → "No, create offline profile"). This profile saves progress locally without needing Xbox Live. Switch profiles at the dashboard before launching the game.