I do sometimes feel that a lot of what could go into the single player campaign was sacrificed for the sake of the multiplayer, but still, I think both is important.
For one thing (please note that I'm not dissing Halo 3 at all), I do sometimes wonder how much more could have gone into Halo 3's single player campaign if there was no multiplayer. This is just an opinion so please don't take this the wrong way. But what if Halo 3's single player could have been twice as long, maybe like a 20+ hour campaign? Personally, I wish it was like that, but I do acknowledge that multiplayer for Halo is just as important, so I'm glad that Halo 3 is the best yet for Live. Still, even though it's a short campaign, I'm glad to hear that the game does satisfy at the end.
And to answer the thread creator's question, nah, single player campaign will never die. It's a silly and unrealistic assumption if you ask me. If there was no more single player than there'd be no more video game industry.
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