The search engine giant has bought the in-game ad specialist for USD23 million (GBP11.8m).

The deal comes after months of speculation over the deal. In February, technology business site Red Herring reported that the deal had already been signed, with Google making a strategic move to secure multiple technology patents.

According to Gamasutra.com, a list of FAQs on Google’s website indicates that the company acquired AdScape because: "In-game advertising is an area where we believe Google could add a lot of value to users, advertisers and publishers. Adscape Media's technology and talented team are a great addition to Google's current advertising solutions for advertisers and publishers."

The purchase puts Google in direct competition with Microsoft, after it bought in-game ad firm Massive for USD400 million (GBP 205m) in 2005.

Massive currently has agreements in place with THQ, Ubisoft and Take-Two.