I remember the home computer price wars of 1983. The TI-99/4a that I had paid hundreds of dollars for in 1982 was selling for $59 by late 1983.
I was annoyed at having to use a C64 for one of my first for pay projects, when the 800 XL was so much better as a development machine (yes the sound and graphics were better on the C64, but slow disk and lack of good OS ruined it for everything else). But they correctly deduced that the C64 would have more longevity so they chose it.