Microsoft is shutting down Skype in May, replacing it with a free version of Microsoft Teams. This move comes as communication platforms like WhatsApp, Zoom, FaceTime, and Messenger dominate VoIP, leaving traditional cellphone calls via Skype largely obsolete.
Current Skype users can seamlessly transition to Microsoft Teams; their message history, contacts, and other data will be readily available without needing a new account. However, Microsoft will discontinue support for domestic and international calls. Users can also export their Skype data, including photos and conversation history, or utilize a provided tool to review their chat history. A 60-day window begins May 5th for users to make the switch. Existing Skype credits will be honored, but Microsoft will cease offering paid Skype features for making international and domestic calls to new customers.
The primary loss with Skype's shutdown is the ability to make calls directly to cell phones. Microsoft explained to The Verge that while this was crucial during Skype's peak, its relevance has diminished due to the widespread availability of VoIP and affordable mobile data plans. Amit Fulay, Microsoft's vice president of product, stated that this functionality is no longer a strategic priority.
Microsoft acquired Skype in 2011 for $8.5 billion, aiming to strengthen its real-time communication offerings and leverage Skype's vast user base (then over 160 million active users). Skype once held a prominent position on Windows devices and was even marketed as an Xbox feature. However, Microsoft acknowledges recent stagnation in Skype's user base, leading to a shift in focus towards Microsoft Teams for consumer use.