Red Bull has built a tropical island, featuring an aeroplane racing game based on Red Bull's real world Red Bull Air Race series.
Home is currently under construction and likely to be opened up for public testing before the end of 2008.
The virtual world will enable gamers to create avatars, interact with each other, create their own apartments, play games, and stream video and music, by connecting to the internet through their PS3 consoles.
John Beasley, brand marketing manager for Red Bull UK said Home represents an opportunity for brands to create "memorable and rich content".
"The game gave us the first opportunity to recreate in the gaming world what we try to do in the real world, which is to facilitate interaction, to give people stories, memories, experiences and a really good opportunity to interact with the brand," he said.
Beasley said Home will show marketers how in-game advertising can be used effectively and will open up the medium to more brands. "It's an easy environment for brands to take that first step into gaming," he added.
Sony has set up Home so that gamers and brands can "generate significant revenues", but has not revealed details of brands it is working with.
A spokesman for Sony said that brand partnerships for Home will be announced at a later date.