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Here is an interesting article that came out about two weeks after the PS3 launched in Europe:

http://arstechnica.com/news.ars/post/20070409-hd-dvd-takes-early-lead-in-european-market.html

Look at the cost breakdown of HD-DVD vs Blu-ray:
Quoted from article:
"An HD DVD replication line costs about €800,000 and you can make 40,000 discs a day on it. A Blu-Ray replication line costs €1.7m or €1.8m and you can make 10,000 to 15,000 discs a day."