Microsoft's Skype Discontinuation: Bigger Than MSFT & Skype

On February 28, 2025, Microsoft announced its decision to discontinue Skype. Skype revolutionized computer-to-computer communication to the point  where making a video call became synonymous with "skyping." In 2011, Microsoft acquired Skype for $8.5 billion to add to its product suite. Ironically, the surge in videoconferencing during the COVID-19 lockdowns—when one might have expected Skype to reach its peak—actually marked the beginning of its decline. Zoom dominated the business communications market during this period, as Skype proved inferior for large group meetings, which became more prevalent during the lockdowns. The final blow came when Microsoft decided to make Microsoft Teams, rather than Skype, its flagship communication platform. Skype's decline can be attributed to its failure to adapt to mobile and cloud-based communication trends, as well as its outdated interface, which could not compete with more modern platforms like Zoom.