Well if they figure they will get more customers to offset lower profits they’ll reduce the price. On the other hand if they think they can double the price but

Well if they figure they will get more customers to offset lower profits they’ll reduce the price. On the other hand if they think they can double the price but only lose 10% of customers they’ll do that It’s econ101, the cost of providing the service doesn’t really factor into the price charged, what does factor in is the cost of alternatives (storage from azure, backblaze, on prem, not doing it), and the risks (increase s3 costs and people might realise they are being ripped off on ec2)