Skype for Windows Phone now requires a Microsoft account.

Shortly after Microsoft acquired Skype, users were able to login to Skype with their Microsoft account. A Microsoft account is simply your Live/Hotmail or Outlook account. Skype for Windows Phone displayed a login field for both the traditional Skype account and a Microsoft account. I immediately made the switch when this feature became available. I did however keep my Skype account as it was still required to access Skype WiFi, an app available on Android and iOS that lets you access Skype enabled hotspots worldwide. Now that Skype WiFi also supports Microsoft account, I can get rid of my Skype account altogether.

In the latest Skype update published to the store, a Microsoft account is now a requirement to use Skype on Windows Phone. Users will not see the Skype account field anymore after they update the app and link their Skype account to their Microsoft account. The instructions to that can be found on Skype support site.

After you're done with the linking, Skype will take care of carrying your Skye credits and contacts over. It went well for me and did not encounter any issues at all.

The update which brings Skype to version 2.16.0.266, also lets you see when someone is typing. The usual bug fixes and performance improvement are also there.

Skype is available free in the Windows Phone Store.