I can live with in-game ads in a F2P, but if I've paid for a game upfront or monthly I will not be advertised at. Similarly I don't mind banners and things on web pages for the same reason (though I take issue with popups, pop-unders and full screen shiz). I'm afraid of the XBone actually because I've heard it does actually throw ads at you [http://www.sticktwiddlers.com/2013/06/28/xbox-one-dashboard-created-with-advertising-in-mind/], despite paying almost £400 for the thing. If they think I'll pay £400 to have adverts in my face, MS can think again. I'll end up
I disabled the in-game ads in DE:HR Directors Cut on the PC. I believe they were posters/billboards for other Squeenix games but I'll not put up with it if I don't have to. Besides, I already own any of their games I'm going to so it's pointless marketing them too me. I will say in their defence however, at least they had the grace to a) only display their own products and b) only market video games. If one were to advertise in games, I cannot think of a better example of doing it right, tastefully and in keeping with the game's aesthetic.
Generally, I think brands should be kept out of games. In a fictional universe, even if it's set in our world it's very immersion breaking to have real-world stuff appear. It's the antithesis of escapism. On the flip side, things like Nuka Cola, Blasto, Ryan Industries Plasmids and so on all *add* to immersion but drawing us further into a believable ecosystem.