In other Microsoft news, the company is rumored to be working on its next generation operating system. Codenamed Windows Blue, it will be a low cost upgrade for existing Windows users that will be based on a subscription service for updates.

Details are extremely scarce at this point but it does seem like a probable move from Microsoft. It does seem like Microsoft has been moving in that direction for some time now. According to The Verge in reporting on sources in the know, Windows Blue will keep the Windows 8 name for branding purposes but the OS will receive a new SDK, UI changes, and performance tweaks during yearly updates. The updates are due in mid-2013, and the Windows Blue update service will span from Windows 8 to Windows Phone (Windows Server was not mentioned). Oddly enough, with the Windows Blue update Microsoft will stop accepting new Windows Store applications built to run on Windows 8. The Windows Store will continue to allow existing Windows 8 applications, but will require developers to rewrite their applications using the new SDK in order to get them on the Store for users running Windows Blue subscription service.

It is a lot to take in, and there are many unknowns at this point. Do you think Microsoft has a good idea with the yearly subscription model, or will it cause backlash from users used to the way Windows has worked for years. Especially those that buy an OEM system with a pre-installed OS and use it until something breaks. Will they be receptive to yet another subscription service for an OS that traditionally has been a one-time purchase?

Assuming it is a good idea, how much would you pay for yearly updates? Will the Windows Store be enough of a success to essentially subsidize the development cost and allow for cheap pricing on the subscriptions?

Find more details on the rumored Windows Blue subscription over at The Verge.