The above picture is of Crimson Dynamo, the only villain that's been confirmed for the "Iron Man 2" video game. But his inclusion does say a lot about how closely the game follows the events of the movie. In short: Not closely at all.
See, the main baddie in the movie is called Whiplash, and is based on an amalgam of a minor Iron Man villain of the same name and Crimson Dynamo, what with his Russian prison background. So having another dude in the movie called Crimson Dynamo seems a little redundant, no?
David Allen, a Sega Brand Manager, confirmed that "Crimson Dynamo is not in the movie." He went on to say that the whole game is separate from the movie, giving the developers a lot more freedom with the storyline. The game will take place after the events of the first movie, everyone now knows that Tony Stark is Iron Man, but apart from that fact there's no real interweaving.
The hope is that this freedom will make "Iron Man 2" not, to put it bluntly, suck as much as the first game did. I wasn't able to play the game at a recent Sega event in New York, but Allen mentioned that Sega knows the first game missed the mark and is working on several elements to improve things this time around. Allen specifically called out improved flight controls and more variety of the missions. There are also battles inside buildings, whereas before it was limited to wide open landscape levels.
In watching Allen play the game, it's clear that the title's pretty early. Truthfully I didn't see the sort of major progress that would convince me the ship will be righted this time around, but the game still has around 7 months left in the oven, so it's really too early to judge. I'll be keeping an eye on it as it nears release alongside the movie next year.