TOKYO (AFP) - - Sony announced Friday that it will start offering virtual advertising space in PlayStation 3 games as part of efforts to stem losses from the console.

Players may see the ads in spaces such as billboards and wall surfaces within the games, it said.

"Various game titles are played by fans who like certain things, which can offer opportunities for targeted ads," said a Sony spokesman.

"Online games allow greater flexibility for advertisers as to when, where and how long to advertise," he said.

Sony has teamed up with in-game advertisement firms Double Fusion and IGA Worldwide for the new service, which will be available mainly in Japan, North America and Europe, the spokesman said.

Sony has sold about 13 million PS3 units since it was launched two years ago but has struggled to break even on the console amid tough competition from rival Nintendo's Wii.

The group has previously said it hopes its game unit will return to profit in the current fiscal year.