Bethesda has confirmed that Skyrim will not contain armor or weapon degradation, which means no hard-earned coin need be spent on repairs.
According to Pete Hines, speaking on Twitter: "We replaced that w/ creating/improve weap/armor, instead of spending lots of time getting them back to where they were."
In Skyrim, players will craft weapons and armor and improve them in the game, so there is no longer the need to have them repaired.
The Elder Scrolls V: Skyrim is out on November 11. Check out the developer diary for Xbox 360 posted earlier today, here.