The fact this is happening means they are finally getting the point that their gaping profit margins for "R&D" just aren't realistic. They aren't subsidizing either, this is just cutting down profits, and I bet there's plenty left.
This is a $199 speaker at best, but I wouldn't pay more than $149. Plus, Alexa's integration with my home automation blows Siri and homekit away. (My Mac just changed "homekit" to "home kit", meaning Apple hasn't even taken the time to put their flagship home automation product into their standard MacOS dictionary. My mac corrects every other product I type in.)