This is some aggressive pricing and will definitely eat into EOS R8 sales, and maybe even a chunk of EOS R6II sales.
It offers a lot that R6II does, but for ~$500 less. With Sony's release of the A7V approaching, which is probably gonna be a 40MP camera, Canon may not be doomed, but they're gonna be under quite some strategic pressure at Christmas.
Also, with their self-created problem that people are getting fed up about no third-party lens alternatives (for full frame).
They've been sleeping for years in the mirrorless market. Then they woke up and managed to surpass Sony. Just to knock themselves in the foot with limiting their lens selection.