If AMD's pricing is more reasonable, Nvidia will be funnelling GPU buyers to their main competitor...
I very much doubt any of the two has the intention of lowering the prices.
After all, consumer GPUs represent a rather insignificant source of profit, compared to their total earnings.
But, even if AMD did that, they would first have to drastically improve their cards in the Ray Tracing sector, in order to make them more attractive.
When people opt for Nvidia, they partly do it under the perception that they 're buying from the best GPU company around. To a certain extent, they are not wrong for thinking this way.
From that perspective, AMD's unwillingness to compete for the high-end, doesn't help much either.
But, like Nvidia, they just don't care at this point.
PC gaming, is an ever-shrinking market and there's much more money to be made elsewhere - AI, to be exact.