As we suspected, the news is official for the new Pre from Palm; it will be released during the first week of June in Sprint stores beating the next iPhone to the street.

The decision to launch during the first week of June is likely an important make or break decision for Palm, who along with Sprint has a lot riding on the success of the Pre launch. The decision to launch ahead of the Apple WWDC, which opens on June 8th, where Apple is expected to officially launch the latest version of the iPhone OS that has been in beta testing as well as a new revision to the iPhone, according to our sources, is a high stakes gamble.

The stakes for Palm with the launch of the Pre are huge. While the company will not admit it, suggesting that the Pre is the first in a long line of Palm devices using the WebOS that powers the Pre, the whispers that we hear tell us that Palm might not survive if the launch of the Pre isn’t a success. Sprint, on the other hand, needs to gain ground on the iPhone and will most certainly survive regardless of the success or lack thereof the Pre launch.