Generally dumping product at cost or loss to eliminate competition is frowned upon, and illegal in many countries.
China is quite sad by this.
Yes, selling at cost or below cost to force your competitor to take losses it can not afford is called predatory pricing.
As for Nvidia selling cards at 300 dollars, that would likely kill most of Nvidia profit. And Nvidia would only do it if Vega performs like a gtx 1080 ti and costs 500 dollars. But this would be stupid of AMD to charge so little as it would be a self inflicted wound.
The damage because of pricecuts forced by AMD, would cause big damage to polaris' margins.
AMD's graphic division isn't as generous as someone like Bacon1 makes it out to be. They price their cards relative to the market mostly.
You can't keep saying things like this. The 1070, the same exact chip except for GDDR5, sells for barely more than that. In a competition free environment, Nvidia's high volume 1070 money maker is not barely making a profit. And there's no way GDDR5X would turn the 1070 from very profitable to near zero, though I'm all for being corrected on GDDR5X prices.
The gtx 1070 has a monstrous 1/4 of it's shaders fused off. This makes it a profitable card at lower price points. Defects in a die are usually defect per inch,cm etc and they occur randomly all over the die. This is why part of the yields on big monolithic dies is bad. The 1070 can have defects on any of these 4 quadrants or GPC and still work. Hence it increases the yields tremendously.
The 1080 on the other hand, requires a defect to not be anywhere. This makes the yields drastically less, particularly compared to the 1070 this time around.
Making dies isn't that cheap.
It initially cost AMD 85-90 dollars to make the playstation 4's APU on a much cheaper 28nm node and it had a fused off section to increase yields and was 347mm2. 14/16nm finfet wafers cost about 60-80 percent more.
Also nvidia's gross margins are around 59% which is tremendously bolstered by their data center, professional and auto market. From what I remember, in the auto market, Nvidia was selling their Tegra GPU's for 140 dollars in the auto market which is tremendous for a die that small. And the margins for the data center and professional market speak for themselves. This means the consumer market is dragging down this average.