VentureBeat's Dean Takahashi did the reporting so I don't have to: "Sources close to the matter said that Google has developed an in-game advertising technology that allows it to insert video ads into games. In demos of the technology, a game character can introduce a video ad, saying something like, 'And now, a word from our sponsor,' before showing a short video at the end of a sequence in a game. Since testing has been going on for some time, Google could launch the technology fairly quickly, if it so chooses." Microsoft bought Massive, a company which inserts ads into games, in 2006, and Google bought AdScape, a similar startup, in February 2007. Sony's also getting into placing ads in videogames, but most past efforts have dealt with still images, not video.

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