Video Business has a new article revealing that HD DVD is back in the high definition optical disc players sales lead.

According to Toshiba, HD DVD regained first place in sales mid September. Year to date, HD DVD enjoys a 53% slice of the stand alone market, with Blu Ray holding 44% and combo players accounting for 3%. August sales for Blu Ray were boosted by the arrival of Sony's $499 BDP-S300 Blu Ray Disc player. Paramount's announcement on August 20 boosted lagging HD DVD software sales, and is beginning to show in hardware sales as well. HD DVD recently shipped it's third generation of HD DVD stand alone player hardware. The middle and top of the line third generation units are now available, and combined with discounts on second generation hardware, sales are strong. The new entry level HD DVD player, the Toshiba HD-A3 will ship this November. HD DVD has made a strong showing in both software and hardware sales this last month.

With the holiday shopping season just around the corner, things are heating up for a fierce battle this Christmas. This is a crucial financial quarter for both sides in the format war. It will be interesting to see how far the two sides are willing to go to win the consumers' hearts, minds and wallets.