Way back in August, three months before the release of Windows 8, we learnt about the existence of a project at Microsoft codenamed Blue. At the time it wasn’t clear whether this was Windows 9, or some kind of interim update/service pack for Windows 8. Now, if unnamed sources are to be believed, Windows Blue is both of those things: a major update to Windows 8, and also the beginning of a major shift that will result in a major release of Windows every 12 months — just like Apple’s OS X.

This information stems from The Verge, which cites several anonymous sources who are “familiar with Microsoft’s plans.” According to these insiders, Blue will roll out mid-2013, and will be very cheap — or possibly even free, to ensure that “Windows Blue the next OS that everyone installs.” Exact details are still rather vague, but at the very least Blue will make “UI changes” to Windows 8. The sources also indicate that the Windows 8 and Windows Phone 8 SDKs will be merged or standardized, to further simplify the development of cross-platform apps.

Once Blue has been rolled out, the insider sources claim that the Windows Store will no longer accept apps that are designed specifically for Windows 8 — i.e. developers will be forced to create a single Metro app that works on both Windows 8 and Windows Phone 8. Presumably the new SDK will ensure that this is a Good Thing, and not just an arduous hoop to jump through. The sources say that Windows 8 will keep its name for the foreseeable future, too — much in the same way that OS X hasn’t changed its name in 11 years.

WindOS X

Perhaps more important, though, is the shift to a 12-month release cadence. Historically, Microsoft has released a major version of Windows every few years, with the intervening periods populated with stability — and security-oriented service packs. Now it seems that Microsoft wants to move to an OS X-like system, where new and exciting features will be added on an annual basis. In turn, Microsoft will drop the price of these releases — probably to around $25, just like OS X.

In theory, quicker releases will allow Microsoft to better compete with Apple and Google, who have shown themselves to be a lot nimbler than Microsoft in recent years. With Microsoft’s current few-year release cycle, there’s always the risk that its OS will already be oudated or bested by the competition by the time it hits the market. By moving to an annual release cycle, Microsoft should be able to stay ahead of the curve, rather than constantly playing catch-up.

We should also pay heed to that tidbit about Windows 8 and WP8 SDKs being “standardized.” As you may already know, Windows Phone 8 shares the same “common core” as Windows 8 — the same kernel, the same network stack, the same low-level security features and so on. Here at ExtremeTech we’ve repeatedly speculated about the possibility of Windows Phone 8 being removed from the equation entirely, with Windows 8 running across every computer form factor, including the smartphone. Having a single desktop and mobile OS that receives major annual updates, and has access to one vast library of apps, could be a very strong strategy for finally cracking the mobile market.

Now read: Windows 8: The disastrous result of Microsoft’s gutless equivocation