Piper Jaffray analyst and long-time Apple supporter Gene Munster has recently released a report speculating (among other things) that Apple is getting ready to drop the price on the iPod Touch to $199.

This prediction is that Apple will announce at least one version of the iPod Touch selling at a suggested retail price below $200 by the end of September. This prediction will close at the earlier of September 28th or the day prior to the announced date of a significant "special event" by Apple taking place in September. (note: some discretion by the editors will be required when setting this earlier closing date). Judgment will take place at the earlier of an announcement of such a price drop or October 1st (regardless of the existance of a special event if the event does not include such a price drop). At the editors discretion, if there is such a special event that does not include such a price drop the prediction may be either reopened until September 28th or judged as failed.

reference articles:
http://www.appleinsider.com/articles/08/08/06/apple_poised_for_special_e...
http://www.appleinsider.com/articles/08/07/30/apple_warns_resellers_of_m...