We previously wrote about Microsoft plan to replace windows live messenger by skype, it seams these plans have entered in action, Microsoft messenger users are now welcomed by a popup window asking them to upgrade from windows live messenger to skype.
The use of the term upgrade, give the impression that skype is superior to windows live messenger, and also make people think that there will be no more newer versions of Microsoft windows live, and the name was replaced by skype.
On this point it is worth noting that Windows messenger has instant message delivery while Skype have often failed to deliver messages instantly, other bugs of skype have been around since the system was developed.
Messenger and Skype are coming together. Another key phrase confirming the death of the standard windows chat messenger that people have knew and loved since July 22, 1999; 13 years ago, and that was known as MSN Messenger.
On November 6, 2012, Microsoft announced that Windows Live Messenger will be retired in favor of Skype worldwide except mainland China. Users using Windows Live Messenger are able to merge their Microsoft account with their Skype account, allowing them to communicate with their Messenger contacts via the Skype clients. Users will have until the first quarter of 2013 to make the transition.
Skype and Messenger are coming together. Millions of Messenger users will be able to reach their Messenger friends on Skype. By updating to Skype, Messenger users can instant message and video call their Messenger friends.
This effort started with the release of Skype 6.0 for Mac and Windows a few weeks ago, which allows you to sign into Skype using a Microsoft account. Now Messenger users just need to update to the latest version of Skype, sign in using a Microsoft account, and their Messenger contacts will be there.
Why kill Messenger for Skype?
Merging Windows messenger with Skype is a business decision, while Messenger is monetized by ads Skype sells internet to phones credits , Skype had revenue of $860 million in 2010 with an operating profit of $264 million.
Windows messenger has 300+ million user peaking at 100 million user, Skype has 124 million user peaking at 40 million user, Skype have one major advantage: 8 million+ Skype users pay for the service. Skype integrates telephone connectivity and is able to make outbound / inbound phone calls.
The access to paying customers does not justify Microsoft paying $7 billion or about $1,000 per customer. while on average, those customers are worth a profit of about $30.