At this year's IDC event in Tokyo, Intel disclosed a few more details about the upcoming Xe GPU architecture. Besides the hardware-level ray tracing support on the discrete GPUs launching in mid-2020, Intel also intends to double the performance of the current Ice Lake Iris Plus iGPUs on the Gen 12 Xe GPUs integrated with the Tiger Lake CPUs.
https://www.notebookcheck.net/New-Intel-Xe-GPU-info-Gen-12-mobility-iGPUs-designed-to-deliver-1080p-60fps-gaming-discrete-GPUs-to-get-ray-tracing-support.437548.0.html
So what's happening is they don't even have enough capacity to move all CPU production to 10nm which is a major factor in the price (profit) cuts yet they're trying to squeeze dGPUs onto that same process.
OTOH Intel's performance advantage is more or less negated by AMD, and PC is a slow-growing (if growing at all) market, yet it's not like they have an inventory backlog...