As reported by The Wall Street Journal THQ, a videogame publisher, have announced that they are to partner with Massive, an advertising transmission company, to deliver adverts into their next generation of internet enabled games.
Publishers see this as a natural development with 18 - 34 year olds abandoning traditional television in favour of videogames and the internet. Product placement already exists in games with Red Bull powerups in Worms games and advertising hoardings in sports games and indeed gamers in general welcome this saying that it makes the games more realistic.
By supplying advertising over the internet publishers will be able to sell placements on month to month or even week to week deals, being able to charge more should the games be a success. The next natural progression will presumably be to deliver targetted adverts, and with the next generation of consoles shaping up to try and be the centre of a users digital life this could be very profitable indeed.
The publishers will have to be careful however, with gamers being a traditionally fickle bunch and the cost of producing the next generation of games skyrocketing, the potential benefits are huge but the losses could be immense.