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In an age of rising development costs and the need for ever more detailed artwork in next generation games, flash and java games on the net represent an almost zen like return to simplicity. In countries like China and Indonesia, web games are very popular because they are free but most of all can run on even the most simplest of PC configurations.
The Xbox 360 is like the humvee of game consoles. Full featured and robust in where it can go and what it can do. Expensive by local standards and quite rare in the developing world. Web flash games are the Vespa clone scooters of gaming. Everyone here in China can play AND afford them with the right amount of fun to keep the youngsters interested until the next viral flash game comes along. Much like scooters here in China, they are quite common and people tend to look at them as the main form of games to be played whereas in the US both Scooters and Web games are seen as more recreational diversions.
Here is an example of a fun flash game from Japan that plays like a more minimal version of RISK. (via Jay is games)