play multiplayer games with local xbox consoles

This is a game by game thing. You can only play offline multiplayer if the game offers local play on the same console.

They would have to be playing over Live with 2 different consoles. There is no local multiplayer for that game.

Welcome to the Xbox family! The main buzzwords you're looking for are "local co-op" and "local multiplayer." A game with local co-op means that people playing it together are working toward a common goal. Local multiplayer could mean that players playing
together are either working toward a common goal or competing against each other. Additionally, "split-screen" means that the screen will essentially divide itself into smaller screens and each player will look at one of those smaller screens while playing.

When you browse the Xbox Store (or Microsoft Store), you can
filter your search for specific features you want. Local co-op and local multiplayer are among those features. I would caution that if you see "multiplayer" without "local" before it, that might include online multiplayer as well as local multiplayer,
so you definitely want to make sure you're looking at local multiplayer only. One other resource I'd recommend is the
Co-Optimus website, where you can search for Xbox One games with local multiplayer settings and see user feedback that's a bit more specific to the local multiplayer modes.

On another note, I'd recommend looking into
Xbox Game Pass Ultimate, a monthly subscription that grants access to a catalog of featured games as well as the online multiplayer benefits of Xbox Live Gold. There are some great games with local co-op that are available through there, including Gears
5, Rocket League, and Borderlands: The Handsome Collection, and many, many more. I believe right now that they're offering a promotion featuring the first three months for $1.

Hope that helps!

On that box, the numbers under "Xbox One" are for local multiplayer (or split screen, how many players can play on the same console with each other). The numbers under "Xbox Live' are how many people can be in a game on online multiplayer, not the same
console.

Thank you, Ron!

Yes, you can play online multiplayer games, however, local multiplayer is not supported on cloud gaming.

I believe cloud gaming is the list of games that have a 'cloud icon' on the game menu. Is that right? And these games are not supported with local multiplayer.

How can identify online multiplayer games as I do not have a console? Apologies, if the question is inappropriate. Trying to understand how it works.