Great move for them, not so great for everyone else. It was mentioned in a post above but was ignored. They aren't doing this for short term. They are doing this to put their smaller competition out of business which in turn means more available customers for them.
The question you should ask yourself is how are you going to counter a massive competitor when they drop their prices to $10 and you can't afford that and have affiliates? There are multiple solutions to this just good luck picking the right one. And I'd recommend not discussing this on these forums... far too many thieves here. But this is just my $0.02
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