XBLArcade has received word that Chair Entertainment is looking to create a mini revolution in Xbox Live Arcade games. Why mini? Well regardless of the recent file size limit increase Undertow will still be kicking it old school by cramming it's Unreal Engine 3 goodness into 50MB much like the fan favorite RoboBlitz. Why Revolutionary? EGM said so. According to the developer, they recently showed EGM the game, so it is a possibility. Only time or Dan Hsu can tell.

Undertow does seem to one up the current arcade live implementations (even Small Arms) with conventions found in games like Gears of War. For instance:[quote]You can play online co-op [campaign] over Xbox LIVE or you can play co-op locally via splitscreen. You can also join Xbox LIVE multiplayer matches in splitscreen. [/quote]No word on how many players can play splitscreen, but I would say it's safe to say at least two.