To date I’ve only noticed in-game ads in “Crackdown” for the Dodge Calibre and Nitro cars, and Die Hard 4.0 (awesome film by the way).
I’m not the only one noticing these in-game ads but it is interesting to note the comments of gamers rather than advertisers since they currently seem quite negative. The players are naturally concerned that Microsoft (in this case) is taking money from “both sides” with the gamers paying high prices and the advertisers further contributing. understandably there are also concerns about player privacy.
I’d expect there to be a tipping point where the ad revenues begin to subsidise the production of the games, and maybe even help deliver free downloadable games entirely supported by ads.
My final though at this stage is the potential for a wider audience to be targeted through in-game advertising. The amazingly successful, if not frustrating, launch of the nintendo Wii has demonstrated a wider market for games consoles and a rush of family -oriented games is now predicted.