Intel generally doesn't get into price wars. They didn't do so even when they were getting beaten outright in both raw performance and perf/watt by AMD back in the Netburst days. Intel's culture is 60%+ gross margins on everything - with the notable exception of ultramobile Atoms, which they're willing to literally give away if that's what it takes to score design wins.
What you're suggesting here is AMD releasing a part with similar market positioning and appeal to Thuban. Remember when that was released back in 2011? You had to pay $999 for a six-core Intel SKU (the i7-980X), but AMD provided six full cores for $199-$295. The most popular Intel chip at that time for enthusiasts was the i5-750 (Lynnfield Nehalem). Thuban fell behind i5-750 in single-threaded performance, while defeating it in most multi-threaded benchmarks. You can see Anandtech's review results
here. The important thing is that even though it did fall behind Intel's competing products in single-thread, it didn't do so by anything like the ridiculously embarrassing margins we've seen with Bulldozer and its progeny. Thuban was also only 904 sq. mm., less than a billion transistors, and was far more energy-efficient than Bulldozer (though not quite as much so as Intel's Nehalem-based products). I think we're going to see similar market appeal with Summit Ridge as we did with Thuban. For $299 or so, you'll be able to get 8 full cores, with each core having similar IPC to Sandy Bridge: basically the equivalent of a
Xeon E5-2687W, though with less cache and memory bandwidth. In benchmarks using four or fewer threads, a traditional i7-4770K will beat it (though it will still provide reasonably competitive performance), but in multi-threaded applications, Summit Ridge will have a substantial edge.