Sadly, No. ): When I first saw this game before I'd bought it and played it, I was like: "YES! FINALLY!! A TWO-PLAYER (/multiplayer) SONIC GAME!!!!" Sadly, as I'd soon find/found out, it was only single-player! I was *SO* excited to finally be able to play a multiplayer video game with my younger sister, but was let down when I found out I couldn't do that! I eventually got Sonic's Ultimate Genesis Collection (SUGC), though! (Even though, --being more of a Modern Sonic Fan/Gamer,-- there were only Classic Sonic Games. [But the Sonic Pinball Game was pretty fun, though!]) :D
Yes, this game is backwards compatible.