How much did they cost before?
Also, remember Hanaho is a big company. They probably pay half of what we do on things like joysticks and buttons. Those encoders probably only cost them a couple bucks each. If you had a simple encoder design, and were willing to order 10,000 of them then you could probably get them for a few bucks each as well. They are only expensive to us because we have few sources for them, and those sources are certainly having their actual fabrication done elsewhere, or at least I assume they are, my I-Pac doesn't look like something Andy soldered together in his basement.
Basically, I doubt they are selling these at any sort of loss.