Idk about that. The selection is pretty huge. Sonic racing just came out with 4 player local multi player, stardew valley has it, the majority of Nintendo games. Almost the majority of games designed for a TV and controller have local multiplayer. And there’s software you can use to split screen most games which don’t have it by just running two instances of the game.

Nintendo games generally have it but not so much the actual major console games. I believe the last local multiplayer fps on xbox platform was halo mcc for example.

The relative number of games that do this is small, but the absolute number is growing all the time.