Local Multiplayer after update

After updating my minecraft xbox 360, I was unable to play local multiplayer split screen. We both sign in, start up a game, and the "press start to begin" message doesn't appear anymore. I'm hoping it's not to do with that now both players must be on gold membership, because that would be a bit of a rip off... Anyhow, if this is a bug, when will it be fixed? Or if it's just a problem I'm having, how can I solve it?
Thanks!