We have been going back and forth on the pricing for the hotly-anticipated Motorola Xoom tablet that’s set to launch at the end of the month, with original rumors pegging the Xoom between $700 or $800. Well, Engadget found quite the doozy on Best Buy’s website this morning that suggests those initial price estimates were way off. Turns out, Best Buy will indeed begin accepting preorders this coming Thursday for the sky-high price of $1,200. Yikes!

Now, a couple of individuals on Twitter have pointed out that Best Buy has been hit or miss when it comes to preorder pricing on Best Buy’s site in the past. Though we have no reason to believe the $1,200 price point is wrong at this point, we’re all crossing our fingers that it is a mistake and the tablet will launch for the  $700 or $800 we’ve all come to know and accept.

Assuming the worst, the leak this morning could suggest that the $800 price point is to purchase the Xoom with a full 2 year service agreement with Verizon, and $1,200 is the unsubsidized price (though will still require a 1 month data-activation fee).

Anyone out there still looking to pick up a Xoom if these outlandish prices hold up, or are you considering potential alternatives (G-Slate, Nook Color, Galaxy Tab 1 or 2)?

Update: Best Buy has since removed the posting for the Xoom on their website. Here’s hoping that it’s because the $1,199.99 price was a placeholder, and we’ll see the more friendly $799.99 price come out soon.

Update 2: Motorola has debunked the $1,200 rumor in a conversation with Reuters. The Xoom will launch for $799.99 unsubsidized on Verizon, $600 for wifi-only version.