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.