C64 production continued until 1994. Commodore announced that year, just prior to its bankruptcy, that the C64 production would finally end in 1995, but then they went bust. They held onto the C64 production that long because it remained profitable for them.
Commodore didn't have the money to sell the C64 below cost. I don't think there's any evidence to suggest they did other than possibly for very short periods. People thought they did at the time, sure, but Commodore's ability to cost-cut was in large part due to their extreme vertical integration at the time.
In 1988 the C64 was still selling over a million units a year. It was losing market share fast, but due to the growth of the overall market, not due to dropping C64 sales - sales at that point were still stable. The NES sold ~7-8m in 1988.
Commodore didn't have the money to sell the C64 below cost. I don't think there's any evidence to suggest they did other than possibly for very short periods. People thought they did at the time, sure, but Commodore's ability to cost-cut was in large part due to their extreme vertical integration at the time.
In 1988 the C64 was still selling over a million units a year. It was losing market share fast, but due to the growth of the overall market, not due to dropping C64 sales - sales at that point were still stable. The NES sold ~7-8m in 1988.