If you're AMD and NVIDIA and lowering the price would double the number of customers, you might very well want to do that, unless you're supply constrained -- which has been the issue because they're both bidding against everyone else for limited fab capacity. But that should be temporary.
This is also a market with a network effect. If all your GPUs are $1000 and nobody can afford them then nobody is going to write code for them, and then who wants them? So the winning strategy is actually to make sure that there are kind of okay GPUs available for less than $300 and make sure lots of people have them, then sell very expensive ones that use the same architecture but are faster.
That has been the traditional model, but the lack of production capacity meant that they've only been making the overpriced ones recently. Which isn't actually in their interests once the supply of fab capacity loosens up.
