I'm going to be upgrading my CPU soon, and wondering if the release of Ivy Bridge at the end of this month would reduce the price of the Sandybridge i5 cpus?
unlikely. Intel is in a position where they dont even need to release a new chip to compete, as there is no competition. the I5 2500k price has remained solid for over a full year.
ivy bridge is rumoured to be the same price as list (not sale) sandy prices, so the prices that you saw 6 months ago. the 2500K has been dropping through spot sales recently.
Looking at past history we don't drop prices when we release a new generation of Intel® processors. The demand for the Intel® Core™ i5-2500K has been extremely high (it is our best selling processor in the enthusiast space) so I would think there would be little reason to drop any prices for these prices. Once a processor has been discontinued we have no say over its pricing since we stop selling them at that point. So if you can wait a while you can pick up one of the 3rd generation Intel Core processors otherwise you are going to get as good of a deal as you can on the 2nd generation Intel Core processors right now.