The BBC has an interesting read on the use of next-gen advergaming to subsidize increasing game development costs. From the article: "[The PS3 along with the 360] was also designed with advertisers in mind, but some in the ad serving business say there needs to be compatibility between all the various parts of the gaming industry. 'What we're seeing is publishers and hardware manufacturers becoming more and more collaborative, and that can only be good for the IGA space, as we call it, which is In Game Advertising space,' said Justin Townsend of IGA Worldwide."
In contrast, a Nintendo rep from the article said Wii will not have to rely on income from advertisements because
the console is a glorified GameCube of lower development costs.