I would imagine that intrinsically the costs of buying/renting an X number of CPU cores and Y gigs of RAM just has a certain cost and therefore the price of VPS

I would imagine that intrinsically the costs of buying/renting an X number of CPU cores and Y gigs of RAM just has a certain cost and therefore the price of VPS's just have to be at a certain minimum level. I guess Scaleway is just closer to that edge, but being about twice as cheap as DO (which is quite big and popular) just makes me question the long-term viability of these prices.