The new site won’t win any awards for innovation, indeed it looks like a < $100 template buy from Digitalpoint, but ultimately that doesn't make a difference. Casual flash gaming combined with a youngish user base in the millions makes this a no-brainer in terms of going to be a success for MySpace. The only question is whether it will cut into similar sites that also offer flash gaming. It's certainly not in Kongregate territory yet, but there are plenty of smaller players with very similar looking sites and games. (Having said that, the first game offered on the site is Desktop Tower Defense, so maybe it is slightly higher up the tree).
Games.myspace.com offers a variety of multiplayer and single player games. A link can be found to the service from the front page of MySpace.
(thanks to Daniel for the tip.)