It's not uncommon for game industry icons to express their preferences for or against something. This time around, it's American electrical engineer and entrepreneur Nolan Bushnell. Simply put, Bushnell believes that typical in-game advertising doesn't work. More on his opinion in the full article after the jump.

Movie firm Paramount clued in its interest in the games after expressing its excitement over the progress of the video game sector. Paramount Digital's Alex Carloss, currently the division's general manager of worldwide distribution, stated that we're bound to see more of Paramount in games. In-game ads, perhaps? Find out more at the full story.

Some gamers may find in-game advertisements to be nothing more than shameless plugs, while others still believe it's necessary.

In the Independent Game Conference in Austin, Gordon Bellamy goes into the subject a bit more and discusses how advertising could benefit not only the company who does the advertising, but also the game itself. He also explains why Doritos can't go multiplatform. Find out why in the full article.

Master Chief ordering take out at Burger King? Solid Snake wearing Speedos? These are just some hypothetical plugs that gamers might be seeing in the near future with the way in-game advertising has grown into a phenomenal industry nowadays.

As far back as the early '90s, we've seen games that have plugged, advertised or even coerced gamers into taking a gander at their real-life sponsors, as well as the products tied-in with them. The full article awaits after the jump!

Guys who just got their copy of Wave Race 64 on their Wii's Virtual Console may want to take a closer look at the scenery for a bit of Nintendo-style guerrilla marketing.  Screenshots taken of the game indicate that the big "N" has done some reworking on the title's ROM, and revamped some in-game ads to promote their Wii and DS (screenshots via Siliconera):

  

As this demonstrates that Nintendo can alter a game's data if they will it, it does pose some interesting speculation on future possibilities. For one, what's stopping the company from re-releasing an otherwise Japanese game into a English-translated port? Most tempting.

On a parting note, this author does find one thing strange: while it's understandable that Nintendo posted a DS ad to promote their portable, it seems pretty redundant for them to post a Wii ad as well. After all, by playing the game, it's already implied that the guy already has a Wii console.

In-game advertisements are not really new to gamers. Game developers can basically plaster a Coca-Cola logo on a zombie's chest and players wouldn't mind. (Though that doesn't make them less annoying.) Anyway, analyst Paul Verna from eMarketer sees a bright future for in-game advertising.

Developing games is not cheap at all, especially when the technology improves every other day in leaps and bounds. The solution for some developers is offering advertising spots to other companies that they will insert in-game. In a report called "Video Game Advertising: Getting to the Next Level", Verna says that in-game advertisements would help marketers (it's a whole new platform), fresh opportunities for tech companies, and a good source of revenue for game developers.

Verna gives the figures: "over the next five years video game advertising will grow at a compound annual growth rate of nearly 23%, reaching nearly $2 billion by 2011." The growth will be caused by the widening demographics of gamers - young and old, men and women, casual and hardcore. Online console titles and MMOs are the best sites for in-game ads as they have the bulk of the gamer population and they will be a great factor in the growth as well.

Currently, the cost of making "advergames" have reached US$ 164 million and is expected to reach US$ 344 million in 2011. Revenues from the in-game advertisements are estimated to reach a whopping US$ 969 million (in 2011) in the US alone. And those are very good numbers from a marketing point of view.

There's no turning back now.

Well, it looks like there's no turning back now.

As it turns out, Valve is starting to test out the use of in-game ads for their titles, and the first guinea pig for this experiment is none other than Counterstrike 1.6 (screenies above, both courtesy of SK Gaming). Despite the flurry of protests that the mere mention of in-game advertising tends to generate, many game companies may soon be following Valve's lead.

While some fans argue that the sight of a real-world item being advertised inside a game tends to be detrimental to the whole experience, devs have noted that this form of advertising is actually beneficial for everyone in the long run.

After all, it generates revenue for game-makers.

Revenue equals more (and better) games.

More games equals happy gamers.

On top of that, there have been promises that the ads will remain discreet and out of the player's way.

At the moment, Valve is displaying advertisements for Portal and the upcoming Orange and Black boxes, all of which are their own products.

There have been earlier reports that Google ads may also end up invading the gaming world, and this has caused many to fear the possibility of having to encounter an in-game advertisement for Starbucks in a war-torn, World War II setting. After all, can you imagine running into an ad for McDonald's as you're crawling the trenches in games like Call of Duty or Brothers In Arms? Or perhaps one for Pedigree puppy food during an Unreal Tournament deathmatch?

On the other hand, there are also those who are willing to reach a compromise between revenue generation for the game companies and immersive gaming experience for the gamers. One point of this compromise involve the conditions which specify that ads that appear in games must be carefully chosen to match the theme and setting of the game itself.

Read the rest of the article after the Jump!

Well, it looks like Google is once again finding new ways to integrate itself into our everyday lives. And its new target? In-game advertising.

According to the Wall Street Journal, Google is planning to acquire Adscape, a company which specializes in in-game advertisements. Though there has still been no official word about the matter, many are guessing that negotiations may already be happening. Meanwhile, a Google spokesperson did say this:

We are always considering new ways to extend Google's advertising program to benefit our users, advertisers and publishers. In-game advertising offers one such possible extension among many others.

It has also been noted by members of the industry that Google may have taken a fancy to Adscape because of its AdverPlay technology which allows "two-way communication between in-game ads and the outside world".

Considering that other Google applications are already starting to make their appearances in the world of gaming, could this mean that those Google text advertisements that we usually see on webpages will soon become part of the wall graffiti in your next round of CounterStrike?

As much as we don't like in-game advertising, you have to admit that it's going to pop up in games a little more each year. Liking it or hating it is definitely situational, since we can laugh at the absurdity of Sam Fisher using Nivea's beauty products and get annoyed at ads for Chuckie Cheese in the middle of an epic, 22nd century FPS.

We guess you'll just have to wait and see gamers' responses when they hear that Take-Two Interactive has sprung a deal for in-game ads for a little while.

We got word that Take-Two and in-game advertising company Double Fusion got into a multi-title deal to sell in-game ad space in up to nine 2K and 2K Sports titles. What that might mean is that Double Fusion provides the tech for putting in ads, while they try to sell the in-game ads to the highest bidder. Either that or Double Fusion already has some specific sponsors that hired them for plugging, making this the perfect fit for their plans.

For the most part, we actually don't mind so much if its a sports game. It's hard to imagine the NBA without those ads on the sidelines, and if they can keep the realism there (no Vote for Pedro in 2008 ads, for instance), then it'll just be another one of those nifty little touches that might keep the game price down. We have no idea how they'll make it a sensible addition into 2K's action titles, but we're praying 2K has more sense than other gamemakers to keep the ads contextual or, at least, unobtrusive.

So long as we don't start hearing news of Hideo Kojima giving Solid Snake an in-game Viagra placement for Metal Gear Solid 4, then it's definitely not as bad as it seems.

GameDaily points out that tucked behind Battlefield 2142's manual is a white card that says that the users IP address and "other anonymous data" would be sent to a company called IGA Worldwide in order to deliver in-game advertisements. The disclaimer then says that users should not install or play the game on a system that's connected to the Internet if users aren't comfortable with having their information transmitted and collected by the IGA.

This isn't anything new. And since word of it got out, rumors spread, and people started claiming that Battlefield was forcing spyware into people's computers. Of course it was later confirmed that all that was being sent was IP addresses, geographical regions, info on what advertising the player has been exposed to already, and how big the ad was.

The situation of course raised online debate about whether or not in-game advertising is acceptable. Some argued that it's just the same as having to put up with movie trailers in DVDs, some said that it ruins the gaming experience. Some say that they're alright with it as long as the ads "fit" in the game world; contemporary ads (say a Coke billboard) for contemporary games (in GTA). Some say they don't really mind, and if given a choice between a game having to be more expensive and ad-free or having the game sport a few promos in it but have a lower tag, they'd choose the latter.

Steven Wong of GameDaily pointed something out that made sense. He says:

The biggest problems arise when the advertising takes priority over the game, so players end up spending money on long commercials. Sure, one could buy Burger King-themed games for kids for $4, but I can't imagine too many people who would be willing to spend $50 on something like that.

We guess it's all well and good to have in-game ads as long as it doesn't cross a certain line thematically (no modern ads in a fantasy game please!) and ethically (do not collect more than IP info), and the game still stays a game, not an interactive billboard with a patched on story.