They already dropped. But only $300 at the top. They are in a terrible position. Drop too much and you piss people off because they realize you've been gouging them. Drop too little and AMD eats their lunch as more and more people realize AMD is a better deal.

Wait too long to bottom out their prices and Ryzen becomes the cool chip to have. That eventually filters down to mom and dad as the ask their teenagers which is best for the new PC. If they allow AMD to establish themselves as the go to and Intel starts taking losses on each chip sold, they are in for a really long and bumpy ride. One I believe will see Intel never fully recover from. AMD already has a revision lined up for next year and could reach 7nm first. If that happens Intel might end under AMD and ARM.

Intel is in a really bad position this time, they pretty much milked the CPU market for all it was worth while they had dominance (not that you can blame them). I'm just happy AMD has a return to form this year.