HD DVD group: Cheaper PS3 won't help Blu-ray sales

While gamers and retail chains have been mostly praising Sony's new cheaper PS3 (aside from the backward-compatibility issue), the European HD DVD Promotional Group has said the 40GB system won't have much impact on Blu-ray sales in the region.

"The European PS3 price cut will have a minimal impact on the adoption of next generation HD formats. The real battleground is in sales of standalone players and HD DVD is out in front by a massive margin," Co-Chairman of the European HD DVD Promotional Group Ken Graffeo said. According to the group, HD DVD accounts for about 70 percent of the European market, and it expects that number to continue to grow.

However, many believe this year's holiday period will go a long way in deciding which format will reign as king, and we think the HD DVD group may be underestimating the impact of the 40GB PS3.

This article was originally published on Joystiq.