As noted by 512 Pixels, Apple confirmed new iCloud pricing in the official iOS 8 press release today. These new pricing tiers are a substantial drop from Apple's previous annual storage upgrade pricing model.
The new pricing is as follows:
5GB for free
20GB at $0.99/month
200GB at $3.99/month
500GB at $9.99/month
1TB at $19.99/month
As interesting as these slashed price tags are, Apple is still competing with companies like Dropbox, who are currently giving away a terabyte of space for only $10 a month. Apple's edge in this market is definitely going to be their deep integration with the many upcoming features in iOS 8 that rely so heavily on cloud storage, such as the upcoming iCloud Drive.
You can read more about iCloud's new plans on Apple.com.