Then WTF is? SOMETHING is. Nothing seems to make sense in the GPU market WRT pricing.
Jensen and Su are just as delusional as a person asking $1500 for a used 3080 because they once paid $1800 for it. Then when no seller comes they refuse to lower the price because they "know what it is worth!" and they "won't accept lowball offers!" The difference is that an individual can remain delusional forever, but Nvidia and AMD have shareholders that will force some sanity into them eventually.
AMD's pricing might even make some sense if they think that they can make huge driver gains and the 7900 XTX will end up performing close or at least much closer to a 4090 in raster. It could also be good marketing if they bring out a respin, since they can make a $1200 7950 XTX that performs 25% better than the $999 7900 XTX seem relatively cheap, getting good reviews/PR. Then they can later lower the price of the 7900 XTX for another round of good PR or outright get rid of it.
I think that as consumers, it is important to have a little patience. In a few months or a little longer, we'll know if AMD can get significant gains from improving their drivers, and we'll see how well these cards are truly selling after the initial rush is over and after the holiday period ends, where many people make dumb purchases. I see the current situation as temporary. Not sure whether we will see good prices, but decent prices seem inevitable, because I foresee a lot of gamers just sticking it out otherwise.
Walmart had disc PS5 units with a controller and game for $549 during Cyber Monday online. So demand from gamers can't be driving prices too high. I don't see huge amounts of scalping going on either.
Availability has been getting much better since the last few months, but there is still a lot of pent-up demand. It is still not possible to buy a PS5 for MSRP over here. Sony seems to think that they can meet demand much better in 2023, which will also provide more competition for PC gaming.
I foresee a gradual normalization where prices will gradually get better as availability of components and materials gets much better, TSMC has to lower prices for new orders so their capacity actually gets filled, transport costs go down and in general it becomes a buyer's market where all kinds of fat needs to be cut. Right now we are still in a transitory period.