I think it is ok in sports games where the advertising would be on the shirts, field, and screens anyway if you were watching it in real life but when the advertisements start to extend to product placement in say, and RPG like Final Fantasy where they were pushing these Cup Noodles on you all the time, that it is annoying and feels like a sellout tactic.
Outside of sport games I think companies need to be very careful with this because a lot of the bad press that Square Enix got for FF XV rooted from that product placement and they are a a pretty "protected" company when it comes to criticism.
I think that product placement in RPGs is actually not always a bad thing. I think it can help make the world feel more real and realistic. Furthermore, I think the key is to not let it be so jarring that it takes you out of the immersion of the game. If the product placement fits in with the story and setting of the RPG, then I think it can be a good thing. And if it is too jarring and distracting, then it can be a negative thing. It really depends on the situation and how it is done. Thanks for commenting!