AMD keeps shooting themselves in the foot when it comes to competing with Nvidia. Basically since the RX6000 generation, they started to copy the negative aspects of Nvidia. For example, when Nvidia was price gouging during the mining craze and gamers were desperate for GPU upgrades, AMD copied Nvidia's price gouging, thus leaving people who were in the market to upgrade, with no worthwhile options.
Then with the RX7000 series, they did it again, Nvidia price gouged on the RTX 4000 series, and AMD copied them. Imagine if they went with pre-mining craze prices, the RX7800 XT class card would have quickly been the most popular GPU on places like the steam hardware survey.
While AMD has charged a little less than Nvidia, they effectively became the relativist thinking minus A choice that drives undecided people to Nvidia.
Think how businesses will often place a bad option that is slightly cheaper than their most profitable plan, while other less profitable options will lack close options, as people like being able to compare.
AMD is unentitionally creating that scenario for Nvidia, by making a minus option for them.
For example, Nvidia offers more features, even if most people will not use those extra features.
If someone sees 2 similarly performing GPUs, but the Nvidia GPU is 10% more expensive, then an undecided user will be more likely to go with nvidia because they will see a bunch of extra features that they won't use, but the price is close enough that the user can justify it be thinking, it is better to have it and not need it than to need it and not have it, thus spending a little mor enow, hedges their bet if the need arises.
On the other hand, suppose AMD does pre-mining craze prices (mining craze started in early 2017, thus making the mid 2016 released the last generation that didn't have an MSRP influenced by GPU mining). Cards like the 7800XT class card would for $379.99 (equivalent of upper mid range pricing from before Etherium mining exploded). Now a user will find it insane to go with Nvidia, unless they absolutely must have an Nvidia specific feature for their work.
While it would mean less profit per card sold, it would allow for rapid market share gains, as they will be targeting the largest segment of the PC gaming community; people who were priced out of the GPU market after the mining craze started.
If anything they should consider a smaller profit margin as an investment in the future, at least to quickly bring the people who are still making due with their GTX cards, as well as RX5000 and RX500 series cards, there are many who held on due to each generation within a mining craze ended up with steep price increases, and by the time prices started to go down, the next gen was already about to be released, only for the mining craze gouging to start again. Just about all of those users will be itching to upgrade, but will be turned away due to the current pricing, and whose who finally give in, and accept being ripped off, will choose to get more features while being ripped off.