There is always a finite amount of time for the development of a game. Bringing Multiplayer to BioShock was a daunting task between the tech (there was no multiplayer support in the codebase from the first game) and the expectations of the community. Either you try to do everything and so nothing feels finished or you focus your efforts to do a smaller number of things really well like an accessible online experience. We chose to spend the time we had creating a solid game foundation and unfortunately that did not include LAN play or dedicated servers.
Players on all platforms must rely on matchmaking to find games, though there is an option to form private unranked games with friends. 2K says there will be no support for 'kicking' players as "we felt like it often leads to more unfair kicking than fair kicking."
BioShock 2's multiplayer is handled by external developer and Unreal Tournament series contributor Digital Extremes, with modes including 'Capture the Sister.'
BioShock 2 arrives for PC, Xbox 360 and PlayStation 3 on February 9. 2K recently announced it is "scaling back" the PC version's DRM due to fans' negative reactions.