Innovation in Advertising or Danger to Journalism?

As traditional advertising becomes less and less popular (for whatever reason), media organizations are experimenting with other forms of revenue generation, such as "sponsored content."

Sponsored content, such as this one for the upcoming Playstation 4, looks very similar to the usual editorial content. It is often labeled as sponsored content - this one says the story of from Sony Entertainment Network, a BuzzFeed Partner.

Is there a problem with advertisements looking like editorial content?

Or is this a brilliant new way for media organizations to raise cash?