A drilling apparatus including plurality of subsystems, each subsystem includes a subsystem controller, one or more sensors, and one or more actuators. Each subsystem controller is configured to determine a local subsystem state from measurements received from the one or more sensors and further configured to receive global state estimates and updated control strategies. Each subsystem controller is configured to send command signals to one or more actuators based at least in part on the local subsystem state, global state estimates, and updated control strategy. A method and system for coordinating the control of a plurality of drilling subsystems during drilling operations is provided. A method of drilling subsystem controller decision-making based on a co-player inference playing strategy is further provided.