Microsoft Buys Skype For $8.5 Billion, Will Support Xbox

Microsoft has confirmed that it has bought the VOIP chat service Skype for $8.5 billion. The press release says that the program will support Xbox and Kinect, as well as “connect” Skype users on Xbox Live.

Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

Microsoft says that it will continue to “invest in and support” Skype on “non-Microsoft platforms”, which will fall in at the company under a new division known as the Microsoft Skype Division.

This is a big move for Microsoft and I’m interested to see how Skype will work with XBOX Live and Kinect. Hopefully we’ll hear more details about it soon.