New reports are claiming that Windows Blue just recently hit milestone 1, which is believed to be half way through the OS's development cycle. Milestone 2 will be the final build before Windows Blue RTM's, which is expected to happen in August of 2013.
This news comes right on time, as recent images of a milestone 1 build of Windows Blue leaked. This new information practically confirms the recent image leaks as real. So that's good news.
It also appears to be true that Windows Blue will run version 6.3 of the NT Kernel, and not 6.2 as some originally believed. This is because 6.3 will tell applications what version of Windows it's running, 6.1 is Windows 7, 6.2 is Windows 8 and 6.3 is Windows Blue.
Other reports have claimed that Windows 9 isn't even in development yet at Microsoft, and that the entire Windows team is focused on pushing Windows Blue out the door.
Obviously, Microsoft refuse to talk about Windows Blue, which means most details are still scarce. Nobody knows what Blue will include as an update, or whether the update will be free.