That's only how monopolies or near monopolies can set prices. And even then only to the point where customers don't stop buying that kind of product altogether.
No, that's how every company sets its prices. Price > Cost
You actually already have to admit that you are wrong with the very next sentence:
A company can deviate from what would be normal pricing. To be more or less aggressive with certain products. For number of reasons.
On CDNA and CDNA2, I don't think AMD recouped its costs. Because CDNA3 will likely more than make up for it.
If you had been right about how they price things, they wouldn't lower the price until learned about the unexpectedly cheap 4060 and then concluded that this would increase the sales of the 7600, so then they could lower the price.
You make it sound like this is Pizza, that you can just make another pie. Or not make another pie.
No, these dies on sale today were processed probably > month ago, AMD placed orders with TSMC maybe 6 months ago. A bunch more dies may be going through the TSMC fab as we speak.
They are now coming no matter what, and AMD has to sell them. So AMD opted for price that will likely result in AMD being able to sell them.
This is not a particularly believable narrative.
In general, your narrative dictates that companies should lower prices if they have little competition and dominate the market, but raise prices if they have trouble finding buyers. That is a rather interesting economic theory, that few economists seem to share.
No, I think you just don't know what is high price, what is neutral price and what is low (aggressive) price.
You think $269 is a price increase, while in reality it is a price cut.