There was a hard pivot in TechInfra when Cloud became a priority. And there is a business reason for it - if was estimated that with other cloud providers growing and consolidating Google will cease to be hardware buyer #1 and thus will not get best hardware discounts, affecting profitability of Ads/Search. So there was no choice but to get serious about cloud.
As for dropping prices, nothing will happen - clouds already run on relatively small, albeit oligopolic margins. If one provider reduces price, other providers will follow, with a bit less profit for everyone. This happens from time to time.