I have no issues with product placement in shows/movies/games. I prefer that too a straight out commercial
when I turn on my Xbox, it goes straight to "Load Disc", there's no need to launch my dashboard. I would find it more 'unnecessary' than anything, as I don't plan on launching any advertising links, whether it be on a game console or on certain sites, like the 3 ads I see here in this thread. fwiw, I'm seeing a Nissan Quest / Colorado Tech University and Kia Optima advertisement....none really interest my needs
I have to wonder what % of people would actually use it vs the cost of paying Microsoft to place the ad.
Product placement, in this case, would be from the people who makes the games and not the console manufacturer.