Khakistan is a Middle Eastern nation which, for untold centuries, exported Khaki pants and only Khaki pants.
When the U.S. began buying subsidized Khakis their economy floundered. The country’s king, Huj Asman, in an attempt to restore his country's wealth, stole all Impalavision game consoles. After the demand grew he planned on selling them with a massive markup in their superstores. The only flaw in their plan is that the initial games for the Impalavision were noticeably "sucky". To solve this problem Khakistani terrorists kidnapped Dave and Todd and forced them to create better games.