Microsoft is working on new operating system codenamed 'Windows Blue' which will be released in mid-2013, according to The Verge.
The update on the Windows side, due in mid-2013, will include UI changes and alterations to the entire platform and pricing. We’re told that Microsoft is aiming to make Windows Blue the next OS that everyone installs. The approach is simple, Microsoft will price its next Windows release at a low cost or even free to ensure users upgrade. Once Windows Blue is released, the Windows SDK will be updated to support the new release and Microsoft will stop accepting apps that are built specifically for Windows 8, pushing developers to create apps for Blue. Windows 8 apps will continue to run on Blue despite the planned SDK changes.
Windows Blue will reportedly kick off an annual release schedule for Microsoft similar to the frequency with which Apple updates its operating system.