On a completely anecdotal note, I traveled through Cambodia (Phenom Pehn, Siem Reep) and Thailand (Pattaya, Bangkok) last year and visited some gameshops. All delt with pirated games, PC and PS2 games mosty and offered chip modding services for many last gen and current gen consoles. There was a place in Pattaya that had the most recent stuff, including a 3DS with access to all the games released at the time, pirated and heavily discounted of course.
From my experience, the locals just don't have the money to shell out the equivalent of $50-$60 for one game, so they pirate the hell out of anything. $2 for Godhand and Ace Combat 0? If I had a modded system, I couldn't resist such a sweet deal either. Hope that helps.

having been in China for work a lot, the grey import of consoles is huge.. the Wii and 360 are very popular consoles because they are hackable.. I remember walking into a shop and was given a map with covers and I could choose which games I wanted illegally copied..
or walk in a shop like this:

pick out the stuff you wanted and leave 10 bucks at the counter..


http://www.techinasia.com/thoughts-xbox-360s-potential-china/
http://kotaku.com/5883693/boy-is-chinas-illegal-gray-market-blatant/