The thing is the price should be lower but the RTX4060TI 16GB and RTX4070 12GB are $500 and $600 RRPs,with a $40 Overwatch 2 Battlepass. AMD is not only pricing their equivalents for less(and the RX7800XT has more VRAM),but Starfield Premium is worth $100. So in the mind of AMD,they think they are undercutting Nvidia a decent amount if you add the Starfield bundle,but the issue is Nvidia is massively overpriced in the first place. Hence AMD is "less"overpriced.
Also just as the RTX4070 is the RTX4060TI,the RX7800XT is the RX7700XT.
If the RTX4060TI 16GB had been even $450,I suspect the RX7700XT 12GB might have been closer to $400. Now if Nvidia does decide to cut the RTX4060TI and RTX4070 pricing over the next week,we might see AMD forced to drop pricing somewhat more. But this seems to be what also happened with RDNA1. AMD pushed up the RX590 to the RX5700XT,because the RTX2070 was overpriced. Then Nvidia reduced some prices,and AMD did the whole jebait thing before they launch. It was the same with the RX5600XT and the RTX2060.
It sadly seems the way things have been the last few years ever since Polaris!