Company of Heroes. WWII at its best in video games.
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Dungeon Defenders or Magicka.
I know people don't like Dungeon Defenders because of the large amount of DLC but you need to understand that you're not obligated to buy them, just having the base game is fine as a start. It's a great game to play with friends and getting better loot or beating the tougher difficulties adds to the re-playability.
Magicka is basically the same, the base game is enough to get started and the DLC adds to it but not required. This game also has a ton of DLC and most are just PvP levels.
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Not free, but VERY good and not yet mentioned:
EDIT:
Also super-duper-mega-awesome game - Torchlight 2 with online co-op coming really soon!! :D
EDIT 2:
Short, free, funny games:
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Anyone know of any?
Not free would be alright too, as long as you think it's worth the buy.
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