Interesting stuff. Took a look at their homepage (http://www.boomzap.com/
), looks like they're putting out some pretty polished games for a virtual studio. Couldn't play the demos on my Mac (Windows only), so can't comment on anything but the videos.
I wonder how it's working business-wise. Without a real hit or a steady stream of commissioned projects, it's pretty hard to run a profitable indie studio based purely on direct sales, but once you remove a lot of the real world presence costs, it probably becomes quite a bit easier.
Would be an interesting approach for a more ambitious and cohesive project - I've always thought the "mini-games within a macro-game" genre was particularly well suited to geographically diverse development, since tasks are very easy to split up (a few people on each game).