When I was at AlwaysON NYC last month I asked someone from Google about the AdScape Rumor - that Google was getting into In Game Advertising - and they would not comment except to say Google was interested in that area. 

Well, now it's confirmed  - Google Buys Adscape For $23 Million, according to Red Herring and Search Engine Land:

"…Red Herring reports Google has bought Adscape Media for $23 million. As suspected, Google wants to begin venturing into placing ads within video games and the like. So when will we see Google ads while playing Madden on your PS3? No one knows for sure, as both sides declined to give any comments at the time I write this. Follow the coverage at Techmeme.com."

This is an interesting development; honestly - can you imagine running AdWords ads into Online Games?  I am just wondering what Google is going to do with this …. probably pretty good stuff - from an advertising point of view.  What Google will probably end up doing is make it very inexpensive and easy for advertisers to run ads in Games - and I guess that means "online" games - since the data is going to be streamed into a game as an ad.

Will definitely want to keep an eye on this one.