The Orange View (on hiatus) Because Apple is great but it isn't perfect

10May/11Off

Because their online division’s loss wasn’t big enough

Microsoft is putting some its huge cash hoard to work, paying $8.5 billion for the popular but money-losing Skype video calling service. It makes more sense than when eBay bought Skype for $2.6 billion in 2005 but I'm still not sure where the synergy lies in this deal.

Todd Bishop over at Geekwire thinks there could be something to combining Skype's technology with Microsoft's popular Kinect Xbox controller. The Kinect is a video camera that goes on top of your Tv set and lets video game players control games with body movements. But you can see how the 10 million Kinect owners might want to also Skype call their friends and family. Maybe it feeds sales of Kinects and Xboxes?

Om Malik sees Microsoft using Skype to fight off Cisco and Google in reaching into corporate telecommunications services and bolstering Windows Phone 7. Surely a lot of that could have been done via partnerships unless there's going to be some deep integration of Skype technologies into Microsoft's products.

More as the story develops...

Update1: Yep, Skype is coming to all Microsoft platforms including Kinect, Xbox and Win Phone 7, Sarah Perez confirms.

Posted by Aaron Pressman

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