Marvel: Ultimante Alliance: sweet.
Blast Factor: ridiculous 4 player"grudge match" or 2 player co-op.
Untold Legends: Dark Alliance has horrid camera problems and serious lack of polish, but if you can find a cheap copy, is good 2-player offline action rpg frenzy.
PAiN has some fun multiplayer modes.
Calling All Cars can be wacky 2-4 player madness.
Snakeball i've had some fun with offline and has split screen online, though only for "friendly" games.
Eye of Judgment is awesome if you like Magic TG CCG dueling games. I've had hours of fun with friends offline with this one.
Fighting games are always fun. Def Jam: Icon has some hip hop hilarity and brawling goodness.
I really like Super Puzzle Fighter II Turbo also.
Super Stardust: HD has a co-op mode that is a little awkward.
Full Auto 2: Battlelines (highly underrated imo) has 2-player offline play. i wish they had accomodated online split-screan, though. would have made the game so much better.
FLoW is fun multiplayer for a bit, more for a trippy afternoon on the bong.
Rampage is always good times.
Pixel Junk Racers is fun enough.
Warhawk can be fun; great fun to find a split screen server and go raise some hell with a buddy.
Some of these are PSN titles, of course.
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