Yes, you read the title right! God of War III has been pretty much Officially confirmed to have online co-op functionality. This had actually been confirmed through a unique source, being Sony’s Retail Loyalty Site, which has a Node, or quiz, that you can take pertaining to God of War III. They give you details about a game and then ask you questions at the end (all of the answers are within the game details you red at the beginning). One of the questions asked was “Will God of War III have online cooperative modes?” in which the answer was “Yes”.

As far as that goes, there’s not any details beyond that (like what the modes are and who you’ll play as, etc.), but the Retail Loyalty Site is a pretty credible source, especially since it’s through Sony themselves. When I worked at Circuit City a few years ago, I was part of the RLS. They have quizzes for tons of games, most of which are exclusive, and you build up points you can use towards the purchase of a new game or accessory (I got Shadow of the Colossus for free through the system). It’s basically a training tool for retail associates to build up knowledge of Sony products. They also verify employment by you faxing them a copy of your pay stub every once in a while. Back then I believe you had to have a referral from a Sony rep, but I’m not sure if that system is still in place or not.

Source

UPDATE
Well, IGN got a hold of Sony and it turns out that the news was false. Oh well. I would have confirmed it if I still had access to the RLS site. At least that means they’ll focus more on the single player!