Big changes on the horizon will be welcome news for anyone who has ever braved the sub-zero temperatures of a holiday release date just so they could be the first on the block to get the Nintendo Wii – but it could mean trouble for traditional video game and console developers, as well as retailers.

In the West, a plethora of gaming companies are claiming to have the solution to the digital distribution and revenue issues which have so far plagued the movie, television and music industries. Ironically, the basic solutions being marketed by these companies have been common in China for several years.

As anyone who grew up with a Nintendo knows, the gaming industry can be a very bricks and mortar one. Expensive consoles such as the Sony Playstation, Microsoft Xb ...

...iness environment is turning out to be a strong advantage for companies basing themselves in the country. As Bodin points out, "The [Chinese] virtual goods market of 2009 is five times larger than the US market." It should be obvious to anyone involved that this added level of saturation can offer unique skills, fostered by the Chinese marketplace, to help worldwide gaming companies get ahead.

As the digital distribution of games demonstrates, sometimes the tail can wag the dog.