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And Microsoft paid all that money for Skype....

I believe Microsoft (and eBay for that matter) vastly overpaid for Skype, but at the same time Skype does way more more than this does. Comparing the two things at all is disingenuous.

Not really, I've used Skype since it launched and I love it. But like Word my guess is that most people probably only use 20% of its functionality, voice/video calling and chat. If this does that easily and for free, it will very quickly eat into Skypes market. I for one would switch.

Google Voice w/Gmail integration and Google+ Hangouts have been doing all this stuff for free for a while now and I'm a huge fan of both but I don't think either has substantially changed Skype's market.

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