I don't actually mind advertising in games, especially if they help a free game stay free or help keep costs down for developers who need to watch their budgets carefully, and for the most part I think it's tastefully done. There's nothing really wrong in seeing a billboard for Coke while driving around in a racing game, it makes sense in the context of the reality they're trying to create.
That being said, there are cases where advertising can intrude on the gaming experience and that's where it can get a little iffy ehtics-wise. The moment that sticks out for me is in Alan Wake, where you flip on a TV during an intense trek through a cabin only to find a Verizon ad which feels completely out of place:
http://www.youtube.com/watch?v=mo9Ek...eature=related. I understand Remedy need to make some concessions for budgetary reasons and probably did it begrudgingly but something like this compromises the integrity of the game.
