Currently only Sony places ads in PS3 games but with this new open platform advertising companies IGA, Double Fusion and AdScape, which is owned by Google, will all be able to sell ads in games that run on the PS3.
The platform, which differs from Microsoft's advertising strategy for Xbox Live where advertisers are required to go through Microsoft’s own company, will allow advertisers more freedom when creating in-game ads.
The system will also ensure that ads don't have to be purchased before a game is released. Instead companies can wait and look at the success of the game and then place ads at a later date, eliminating some of the risk.
"It'll come down to games and who has the largest catalog of games," a source told Advertising Age.
According to eMarketer data, the video game advertising market is already worth nearly $400m (£200m) and is expected to grow by 23 percent per year for the next five years.