Stop hating on "poor" Intel,got to think of those margins,right??
To put it in context,the Intel fastest mainstream CPU has been between $305 to $370,and the new top end consumer CPU,is now $499,so Intel is doing a Nvidia Titan level resuffling of ranges,ie,now pushing things one level up.
Will it work,yep - don't underestimate E-PEEN and "wanting the best" for bragging rights,or the fact credit is still very easy to get. People will pay it and prices will start to rise,since I also think AMD will also release consumer products at such price points,but aim to offer more at the price-point then reduce them.
Even look now - AMD has no real reason to drop any prices,which is great for them,since the Core i5 is still where it was originally at RRP,but in reality has gone up a lot more in price. Basically a Ryzen 7 2700X with a decent stock cooler is less than Core i5 9600K money.