As reported by MacMinute:
...Sandisk is expected to introduce new digital music player products and price cuts today in an effort to battle Apple's iPod supremacy, notes Reuters. "Sandisk, which holds the second-largest market share in digital music players behind Apple, plans to introduce a US$249.99 MP3 player with 8GB of storage capacity," notes the article. "That is enough to hold about 2,000 songs, which is double the capacity of the similarly priced iPod Nano, Apple's best-selling digital music player, the report said. SanDisk also is cutting prices on its other music players by almost 30 percent."
Obviously Sandisk will just be getting a few days/weeks jump on Apple. It's all but certain at this point that Apple is set to release new Nanos most likely in 2,4, and 8 gig capacities. It's also likely that Apple's 8 gig will be $249.99 as well.