Intel wants to be the premium brand. They will not half their prices.
They only need to cut down cost on CPU's that are close to competitive range they don't need to cut all their chips prices down.
Look at what nV does with their cards, Titan X is crazy expensive, but they did have 980ti against Fury X at the same price which was just 5% slower that Titan X.
The market is fluid, these companies are run by ego at least when there is competition, if they were, Intel would have been dead with P4. This isn't Apple where they make good products but sell to sheep, Intel sells to a 3rd party before they go into a system, that 3rd party knows what they are buying. That 3rd party is the one the recommends what the consumer should buy.