Electronic Arts Inc., the world's biggest video game publisher had struck deals with two in-game advertising providers, taking its first steps into the online advertising business.

Reuters reports that EA has signed an agreement with Massive Inc., which Microsoft Corp. bought earlier this year. The agreement involves four games and the first of those will be Need for Speed: Carbon, the latest iteration of its popular racing series due in late October.

“You’ll see more agreements like this with other titles in the future,?said Chip Lange, EA's vice president of online commerce, adding that the company plans to negotiate with all providers of online in-game advertising.

“Some video game fans say that adding advertising to certain titles, particularly sports games and those that are set in urban landscapes, add realism. Others chafe at the idea of having ads in products that can cost up to $60,?writes Reuters.

According to market research firm Yankee Group has said in-game advertising is “poised for explosive growth,?forecasting revenue of $730 million by 2010, compared with $55 million last year.

• Yahoo! News: Electronic Arts Signs Video Game Ad Deals.