I have been playing split-screen Minecraft on my 46" 1080p HDMI-connected TV with my 7 year old for the past month or two. There was an update that just came out maybe this week or last and since then we are no longer able to play split-screen. So far I haven't found anyone providing any information regarding what to check or any other possible requirements for this functionality other than the TV requirements. As I stated with the first lines, this is NOT the issue.
I've read something about 'clearing the caches' but I'm not going to lie, I have no clue how to do that with the Xbox 360.
Any assistance in what I can try would be greatly helpful on this.