It was inevitable, but it is happening:

http://kotaku.com/5625516/xbox-live-...ing-november-1

Here's the rundown:

Before November 1st:

1 Month: $7.99

3 Month: $19.99

12 Month: $49.99

After November 1st:

1 Month: $9.99

3 Month: $24.99

12 Month: $59.99

Microsoft is running a deal on 12 Month subscriptions priced at $39.99:

http://www.xbox.com/en-US/live/pricelock/default.htm