Quote from zaphodI wonder how much phillips pays for something like that? It doesn't seem like it would do a lot of good for phillips, like someone would be shopping for tv's and think hey, I remember having a shootout in that old bombed out 1940's phillips factory, I should see what they have for sale! It also seems like a lot of work for the developers to work that in so I would imagine the situation is much more like "we are going to put this in anyway, lets see if the company will pay us to put their signage up there instead of making up some fake company", Instead of an actual form of revenue where companies can push what they really want to advertise.
Product placement is really about penetrating minds with a given product brand, not the context. From what I've seen in film and television, advertisers aren't really too concerned about how the product is used as long as it fits into the film/programme well (eg: car being used by villain is blown up — BMW makes sure it's one of theirs).
Game advertisement is still extremely immature because it's seen in a very immature light: it must show the product in a positive light, it must be on a billboard or something really prominent, etc. Subtlety and context suitability hasn't really evolved much yet, but it will with time and product placement will become completely normal in games.