From PrgmrWiki

I came up with the new plan by taking the minimum price I would want for a whole server w/ a 1TB mirror and 32GB ram and 8 cores, ($512/month, and yeah, if you want a whole server, drop me an email.) and dividing it out (comes to $1/month for 64MB) but there is also per-account work, so I added $4/month just as an account fee.

I also reduced the disk allocations so that I can keep my disks the same size while increasing the ram allocation. But the current big server has a lot of extra disk, so current customers get to keep their current disk allocation.