In my opinion, the development of the game industry is just moving in this direction. Even if you place ads in games that are not too conspicuous and can vary depending on the location of the player, it would bring a huge profit for developers. I'm sure that with the right approach they can spend some of this money to attract players and then there will be a lot more people willing to play than at present.
I doubt gamers would like to have some ads on their games, especially if it's a competitive one. It will hinder their focus and even take them out of their momentum if ever an ad interrupts their play. I know this because I'm a gamer myself, and it's extremely annoying to see an ad on screen no matter how small or how subtle it may seem. Platforms that run these games can still profit from other things, though, not just from ads.