PS3 Games Less Than 360 Games in UK

Sony's finally come out with some good news for the UK: First party Playstation 3 titles will sell for EUR 59.99 / GBP 39.99 at launch, or GBP 10 less than Xbox 360 games, Games Industry reports.
Launch titles will include Motorstorm, Resistance: Fall of Man, Genji, Ridge Racer 7 and Formula One Championship Edition. The games will sell for AUD 99.95 and NZD 109.95, so not such good news for Luke, I think.
Fahey points out that while the suggested retail price for 360 games may be 49.99 pounds, some retailers sell them at the 39.99 price point anyway. This, of course, could also happen with PS3 titles, since we're only taking retail suggested.
Downloadable content will start at EUR 0.99.
SCEE boss David Reeves commented, "Not only will it be completely free to register on the PlayStation Network with no subscription fees and access to many free demos, but with these competitive prices for additional content we are able to offer the consumer both top quality games on Blu-ray discs and a whole range of downloadable content."With over 30 first and third party disc and network games available at launch, we are confident that this will be one of the most successful launches of all time."
How much this will make up for the PS3's gimpy backward compatibility is still up in the air. Which would you rather have, full backward compatibility or cheaper PS3 titles?
Sony announces prices for first-party PS3 games [Games Industry]
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