Skype for Windows Phone has been updated to version 2.16.0.266, which has now totally gotten rid of the old Skype login. You are now required to use your Microsoft account in order to sign into Skype. Ever since Microsoft acquired Skype, Microsoft has been very slow to take over the app. Skype was integrated into Windows and Windows Phone relatively quickly, and offered Microsoft Account as an alternate sign in method.
You can download the update directly on your device through the Windows Phone Store or by using the link which follows:
The new update has some other improvements including being able to see when someone is typing a message to you, and the usual general improvements and bug fixes. But, the main change is with the login. The change log says it is an effort to make signing in easier, and those signing up for Skype for the first time will have to use their Microsoft account as well. There is also an option for two-step authentication as well, if you really need security.
It actually makes sense for Skype to require a Microsoft account, especially if Microsoft plans to integrate Skype into its Windows and Windows Phone platforms. This means we will likely see Skype for Windows 8 and Windows RT also get updated to match this feature soon.
Now it is important to remember that Skype is a cross platform messenger and is also available on Android, iOS, BlackBerry and Mac. While it doesn't make sense for Microsoft to push other platform users to sign up for a Microsoft account, it certainly isn't out out of the question.
source - Skype
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