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Windows Blue is an update to Windows 8, but it's also more than that, according to this ITworld article:
"Windows Blue may not refer only to an update for Windows, but to a set of coordinated updates for several Microsoft products, including Windows Phone, Windows Server, Windows RT, and services such as SkyDrive and Outlook.com."
Word on the street is that Microsoft is about halfway through development of Blue and is aiming for a summer release, possibly in August.
Windows Blue is an update to Windows 8, not a new version of Windows. I'm not sure exactly what will be updated, but apparently it is a major update, so......something.