Microsoft is set to replace Xbox Live chat with Skype on its next generation Xbox console, according to a new report.

A person close to the matter has told CVG that Microsoft will be “consolidating all their communications technology” around the Skype platform. This seems to suggest that Skype will become the main chat tool for the next-generation Xbox.

“You might jump to the conclusion that we’ll see asynchronous voice and video messages in next-gen Xbox Live,” the source added.

The thing that sets Xbox 360 apart from PlayStation 3 is its excellent Party Chat feature, and as long as Skype works in the same way for the next-generation then I don’t really see it taking anything away. However, if it doesn’t work quite as seamlessly then expect all hell to break loose.

How do you feel about Skype replacing Xbox Live chat? Let us know in the comments below.

Source: CVG