UPDATE: It's here. It's Skype version 3.0 (according to the App Store). It allows video calling over Wifi and 3G for iPhone 3GS, iPhone 4 and the 4th generation iPod touch. Of course, with the 3GS video chatting will be a little awkward because the device doesn't have a front facing camera. Since the application is usable on all iOS devices, iPads and third generation iPod Touches will be able to receive video. Users with iOS will be able to video chat with Skype users on Windows, Mac and Linux machines. They do have big things planned for CES. We're guessing it's more video chatting clients on platforms like Android and Symbian plus some surprises.
Skype's all set to knock FaceTime off its high chair. A document on the Skype website indicated that the chat service is set to announce video calling abilities, with support for the iPhone. It's not mentioned whether Skype for Android, Symbian and other platforms (however, the Nokia N900 was the first mobile device to get Skype video calling abilities) will also get Skype with video calling abilities. Another hint at Skype announcing its video calling abilities is that the company's taking part in a panel called “Video Calling Gets Ready for Primetime,” at CES 2011.