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Other than the ability to make video calls to a computer/laptop, I'm not sure how this is an improvement from Apple's "FaceTime".

I suppose that if you own an older iPhone/iPod or an iPad and want to receive video calls but not have the ability to broadcast your own video, then this is a much appreciated update.

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Two big changes:

- you can video chat with people without an apple FaceTime compatible product.

- you can use it over 3G unlike FaceTime which is limited to wifi

- you can do voice only calls, which means your iPod Touch is now a phone

You could do that before the update.

thanks, I had no idea. I thought it was still text only

Most iPod Touches do not have a microphone =[

"Other than the ability to make video calls to a computer/laptop"

The number of device that you can make video calls to increased from ~10M (iPhone4 and iPod Touch 4) to ~1000M (internet-connected PCs, notebooks, and netbooks).

So if the Skype videocalling network has 100x the devices as the FaceTime videocalling network, then its value is something like 10,000 times greater [1].

It's a bit like stating "I'm not sure how $10 million is an improvement over $1000."

[1] http://en.wikipedia.org/wiki/Metcalfes_law

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