The HD DVD Promotional Group had scheduled a cocktail party and press conference for Sunday night, kicking off their presence at CES. But now, according to CNET News and EngadgetHD, the party has been called off as the HD DVD camp scrambles to cope with Warner’s bombshell Blu-ray announcement. The HD DVD Promotional Group sent this out in an email:

Notice of CES Press Conference Cancellation by North American HD DVD Promotion Group

Based on the timing of the Warner Home Video announcement today, we have decided to postpone our CES 2008 press conference scheduled for Sunday, January 6th at 8:30 p.m. in the Wynn Hotel. We apologize for any inconvenience this may cause.

We are currently discussing the potential impact of this announcement with the other HD DVD partner companies and evaluating next steps. We believe the consumer continues to benefit from HD DVD’s commitment to quality and affordability – a bar that is critical for the mainstream success of any format.

We’ll continue to keep you updated on new developments around HD DVD.

I have to think the timing of the Warner announcement is no coincidence. I’d bet the Blu-ray camp worked with them for maximum impact, increasing the damage to the HD DVD camp by making it a spoiler for all their PR efforts at CES. No matter what the HD DVD camp says or does this week, it will be overshadowed by this announcement. This is really no way they can put a positive spin on this. It is unsurprising that they’ve postponed their press conference, as this issue would dominate and they’d be unable to make any decent promotional ground.

This is not going to be a good CES for HD DVD. I think the BDA should swoop in and pick up the tab for the room and food at the Wynn and throw a wake for HD DVD!