With rumors swirling about NVIDIA releasing the 9000 series of video cards, starting with the 9600, it appears that AMD isn't too worried. If anything, it seems that they're planning on undermining the launch via price cuts of their existing HD 3800 series cards. Do bear in mind that the suggested prices of the 9600 series cards are simply rumors until they hit shelves:
“With 9600 cards expected to hit the market at suggested retail prices in the range of US$169-189, this puts them up against AMD's current mid-range offering, the Radeon HD 3850, at between US$169-229. However, early benchmark results show the 9600 GT delivering performance just slightly below that of AMD's higher-end product, the 3870, which carries current pricing of around US$189-250 and above.”
As soon as NVIDIA launches their new cards you can expect HotHardware to have all the inside info, so stay tuned to see how it stacks up.