And AMD didn't have a clearly superior product to Nvidia either. At the same time Nvidia was invading the market with the overclocked G92b based Geforce 9800 GT/GTX which were super popular cards at the time, and the GTX280/60 were just around the corner which were competitive enough.
It was a great decision, especially considering this happened in 2008, the year when the subprime crisis spread to the whole world.
ATi had been bought by AMD 2 years prior to all of this.
Then either I've mixed up cards either you're the one being ridiculous.
Either way, AMD's problems are what they are. I'm tired of hearing this ridiculous trope that "AMD needs to lower prices" from people that can't understand the first thing about markets.
If they lower prices, they don't make more money nor raise their market position (I.E get a competitive advantage). That's the end of that.
The one case in which this argument would make a modicum of sense is if AMD decides to flood the channel and market with as much as they can, with the goal of getting the product out at any cost. This is an extremely unlikely thing to happen since:
A/ Nvidia still sells much better even when the price/perf ratio is 20% worse
B/ That would put increased strain on TSMC which has no reason to happen since the pecking order is still Instinct/EPYC/Ryzen/Radeon
C/ In case they go for an older, less used node, then they're effectively making a poor man's GPU, which will completely walk into the NV propaganda of "we are the real GPU, they're the loser's GPU"
For AMD to actually try flooding the channel and lowering prices, they'd have to output more volume than normal while offering a cheaper, less margin-y product. NONE of these things make sense for them to do. No need to put GPU pressure on TSMC for gamers that prefer Nvidia, no need to kill margins, no need to raise volume and potentially fail and get a crappy GPU excuse.
Their actual options are:
A/ AMD gets a squarely better product than NV and the NV cult megaphone spam starts getting distorted. They win by hardware quality. Unlikely but the most likely out of the three.
B/ AMD raises their software offerings to the level of NV and it boils down to "same, but cheaper and more available" since I expect FSR to start digging DLSS out of the market by being FOSS. This is incredibly unlikely for every reason known to man: NV puts a lot more effort than AMD in SW, bespoke SW is easier than generic, FOSS at this level of complexity is very difficult to draw a large crowd of devs, etc. I'd say this is the least likely outcome of all.
C/ NV makes a serious blunder, something like a generation-wide 4060 Ti, and everyone is disappointed. Despite all the Cultists chanting for the Raytracing God and the 28th Coming of the Leather Jacket, people get disgusted and try AMD, and don't massively go back. NV is all about execution, so this is again unlikely. AMD would also need to retain those customers which is more difficult than one might think. I've heard people complain about AMD to the point that Adrenalin was "too complicated and poorly made" despite being a zillion times better than Nvidia's stuff. But people are used to NV and don't like to think about new things, they want a seamless, no thoughts head empty experience. They'll also be encouraged by the Cult to be extra critical of AMD while assuming that anything wrong at NV's is just an unfortunate accident. So we'd need the blunder to be a real one, a whole generation of disappointment, enough that they put real effort in walking away from Nvidia.
B won't happen. C is very unlikely. Which means A is the best bet, just pummel NV's position by showing that you have the Real Power. But even that is a hard sell. You can't just come out with 150 CUs in a 800W card and say "look, best Raster ever". You need the RT, you need a square beatdown with zero doubts that your stuff goes harder than their stuff. And I'm not seeing that happen anytime soon. Even that "RDNA 5 will be the real killer" thing is very much doubtful.