Home News End of an Era: Microsoft to Shut Down Skype in May and Replace It With Free Version of Microsoft Teams

End of an Era: Microsoft to Shut Down Skype in May and Replace It With Free Version of Microsoft Teams

Author : Victoria Update:Mar 25,2025

Microsoft has officially announced the closure of Skype in May, opting to transition its user base to a free version of Microsoft Teams. This move coincides with the increasing dominance of VoIP platforms like WhatsApp, Zoom, FaceTime, and Messenger, which have overshadowed traditional cellphone calling services such as those provided by Skype.

According to The Verge, existing Skype users can seamlessly transition to Microsoft Teams by logging in with their current Skype credentials, thereby retaining access to their message history and contacts without needing to establish a new account. Microsoft plans to gradually eliminate support for domestic and international calls on Skype.

For those who prefer not to switch to Teams, Microsoft offers a tool to export Skype data, including photos and conversation histories, allowing users to retain their past interactions. Users have until May 5 to make their decision, as this is when Skype will cease operations. Microsoft will continue to honor existing Skype credits, but will discontinue offering new paid features that allow for international and domestic calls to cellphones.

The discontinuation of Skype marks the end of an era for direct cellphone calls facilitated by the platform. Microsoft's Vice President of Product, Amit Fulay, told The Verge that while the telephony feature was once a significant draw during Skype's heyday, its relevance has waned. "Part of the reason is we look at the usage and the trends, and this functionality was great at the time when voice over IP (VoIP) wasn’t available and mobile data plans were very expensive," Fulay explained. "If we look at the future, that’s not a thing we want to be in."

Microsoft acquired Skype for $8.5 billion in 2011, aiming to enhance its capabilities in real-time video and voice communications and tap into Skype's then-160 million active users. Skype once played a crucial role in the ecosystem of Windows devices and was promoted as a feature for Xbox consoles. However, Microsoft acknowledges that Skype's user growth has stagnated in recent years, prompting a shift in focus towards consumer use of Microsoft Teams.

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