Microsoft to Hang Up Xbox Live Chat – Replaced with Skype on Xbox 720

Around the time of the 2011 buyout of all Skype property and licensing by Microsoft there were many rumours that the company would seek to replace its Xbox LIVE Chat (the way gamers currently communicate on Xbox 360) with its $8.5 billion acquisition. As momentum builds towards a next generation console reveal at some point this year it would seem those rumours have found new life.

After planning to pan its desktop software MSN Messenger in March, replacing it with Skype, attention has again moved to the future of communication on the Xbox LIVE network. Computer and Video Games claims that Microsoft will “consolidate” its chat experience with the benefit of Skype voice and video technology for the next console.

News of this is suggested to break officially with the launch of the Xbox 720 – the long awaited new console with a first outing being heralded for this year’s E3 expo in June and some grand boasts of quad-core Intel processing power and 8GB of on board memory. Skype is now expected to be included from day one as chat service of standard, and just like the plans for MSN Messenger, existing Xbox LIVE Chat user accounts will be transferable for an easy transition.

Gadget Helpline will be following the latest on this story and all things leading up to the frequently mocked-up but as of yet not official Xbox 720 as we head towards E3.