Told you so - the price of the XOOM will indeed be significantly less than $1,200 (at least according to Motorola CEO Sanjay Jha). In fact, if you decide to take the WiFi-only route, the tablet will cost just $600 - half of the price Best Buy put up (and subsequently took down). 3G connectivity will come with a $199 premium (jacking the price up to $799), though it's worth noting that the XOOM's radio will see an LTE upgrade sometime down the road.
Of course, there's probably one question on your mind: "How does this look next to Apple's pricing?" Well the cost of the WiFi-only model actually compares favorably - a 32 GB WiFi iPad costs $599, so the two tablets will be neck-to-neck.