My brother bought the special edition version tonight for the Xbox 360 and it says in the manual on page 22:
A Quick Tip from Dan
If you have 2 controllers, you can team up with a friend to play an online battle! It’s easy – just press the START button on the other controller while at the Character Select screen! This is called Local Pair Play!
We tried to play scramble mode online. Figuring that since it was their “party” mode it would most likely be the one to let us play together on one console (I could understand it being rejected for ranked play) but it didn’t work. Didn’t work in a ranked game either. Didn’t try Endless.
We even have 2 gamertags so we tried to invite another in to the game and it just sends the invited player to the start screen once you accept the game invite… it tries to join the game/player (which of course doesn’t exist anymore since the game went to the start screen) and gives a “Unable to join lobby” type message.
Didn’t see any message about having the other controller press start. We were using 1 arcade stick (the mad cat, SF TE? - red, black, white sides) and a normal Xbox 360 wired controller.
I hope they’re aware of it and can patch it in some how.
Edit: here are images of page 22, the manual cover and game box cover: