Subscription based MMO's wont work as there are tons of Free-to-play games in asia

Very much different from the western market

I think they need to fuse Japan, China, Korea, Monogolia. Ya know that region into he Asia Region.
While they are at it, fuse North and South Americas into the american region.
Oh, don't forget those crazy countries like England, France, Germany. Ya know. Make that "Europe".
I think that leaves New Zealand and Australia. Hmm, they are surrounded by a bunch of ocean. Grab all those islands and make the Oceanic region!

4 Regions! Hurrah!

But honestly, seperating markets like japan and china make no sense to me. They are both geographically close to eachother, so why not make it into one big asian region? I suppose theres stuff like demographics and currency to take into mind. So when it comes to china being its on region? The answer is "What is no" alex.

 There are huge differences between japan and china! Different culture, different economy, different taste for games. Just because they are geographicaly close to each other, they are not one market. -.-

A country that makes Vii's and POPstations can't be the new market.

My tiop game Panzer General (was a ps1 game)

Income isn't high enough to become a market of similar size to Japan, US or Europe any time soon.

1. Communism (doesn't seem to be a huge factor anymore)
2. Pirating (still very rampant.)
3. Electronic medium (PC games don't require discs)
4. Most people who do play PC games in that region of the world seem to play at gaming cafe's, but that at least means that there is interest for gaming.

@NightstrikerX: The way VGC represents the regions, is the same way the console manufacturers represents them.

When you look at what the financial statements read, you'll notice that regions are based on "importance factor". Japan is kind of odd in Asia, since financially its a "western" country (and politically and by pop structure).
Americas, in the other hand has one big market and a bunch of smaller ones, when it's logical to put as a single market.
Europe, then again, has had a big market for only a decade now, while it still is culturally and financially different.
Outside Japan, USA and EU we have Canada and Australia, which are a little bigger markets. And outside all the above, we have only a number of small markets, such as South-America, non-EU european countries, Russia, China, India, the rest of Asia, african countries and that's just about it.
So when you stack all the not-so-important markets into one (and fuse some into another bigger market), you're starting to make sense with the regions.

@Topic: It's also possible that EU could form one region, while China would be dumped into "others". It's only a matter of growth expectations in China.

@dib8rman: What do communism have anything to do with videogames?

very good points...

I think Russia or the new USSR (if Putin suceeds) may end up as the new market before China.