In another bad news for the HD DVD camp, a study released last week by Japan's Business Computer News and quoted by AFP revealed that Blu Ray is dominating the sales in Japan.

During a three-month period, from October to December 2007 the Blu Ray format, created and promoted by Sony, accounted a 90 percent of next-generation DVD recorder sales.

The study has tracked the sales in 2,300 electronic stores across Japan and it concluded that in the same period, the next generation DVD recoreders sold rose from 6.1 percent in October to around 20 percent in November and December. Sony’s Blu Ray players accounted 60 percent of total sales.

Following Warner’s announcement that will support exclusively the Blu Ray format, Home Media Magazine reported that during last week in US the Nielson Video Scan data shows Blu-ray captured 85% of the high definition media market.

The Top 10 was dominated by Blu-ray titles this week, with not a single HD DVD title selling enough units to be considered a contender.

Last week, Toshiba has slashed the price of its HD DVD players in US and in Europe. The HD-A3 will be sold in US for $149.99 from $299.99. The HD-A3 wasn’t the only player “affected” by the price cuts. The price for the HD-A30 was also halved, from $399.99 to $199.99, while the price on the high-end HD-A35 went from $499.99 to $299.99.

In Europe, Toshiba said the price of the HD-EP30 player, would be reduced to just below 200 euros ($229).

But it remains to be seen if Toshiba has found the right strategy in its desperate fight with Blu Ray.