The HD DVD Promotional Group has issued a statement to say that they believe it will have "minimal impact" on the next-gen DVD market.
"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." said Ken Graffeo, co-chairman of the Group.
As well as giving Sony a much-needed sales boost in the gaming market in the run up to Christmas, the new 40GB PS3, that will be £299 when it's available later this month, will also be one of the cheapest Blu-ray players on the market.