The stand alone Kinect now retails $109.99 in the US, down $40 from its launch price.
Microsoft's Larry "Major Nelson" Hryb also announced that in North America, Latin America and Asia Pacific regions that price drop is now available. The price will drop , though the amount wasn't disclosed, in Australia and New Zealand on October 4.
So far no price drop for Europe or Japan, though Japan might be a loss cause for Microsoft either way.
Kinect must be in decline or at least just the stand alone kinects. This could be a signal that Microsoft might plan to cut the price of Xbox 360,they could be waiting for Nintendo to reveal the price for of Wii U and weighing their options.
Source: Major Nelson