Today Microsoft announced that it is buying Skype for $8.5 billion in cash. The deal has gotten the blessings from both Microsoft’s and Skype’s board of directors. Microsoft plans to take what Skype has built, and expand it onto some of its platforms. Specifically, Microsoft will use Skype to enhance the Xbox 360, Kinect and the Windows Phone operating system.

There’s no doubt that the current economic recession is having an impact on the video game industry. Companies are downsizing, consolidating or closing (which means games are getting delayed or canceled), games stores are cutting back and game-related publications are also feeling the pressure. Of course, a recession cannot last forever and the game industry will thrive and continue to evolve

It’s not clear what the long-term affect this “economic downturn” recession will have on the game industry but a few things might be extrapolated from current trends.

Here are a few predictions of game industry-related results that stem from a mix the current economic recession, corporate tendencies and a bit of fantasy. Fee free to post your suppositions in the comments area below.

To use Skype on a PSP, you’ll first need the right hardware: a PSP-2000 ($170, the thinner, more recent model), the PSP-2000 Remote Control ($30, which does not come with the system and the original model PSP remote won’t even fit into the port) and the PSP-2000 Headphones ($20). If you don’t use the PSP-2000 compatible remote and headset, PSP Skype won’t even let you finish signing in. So, just to get started and assuming you don’t have the…

Click through for more about Skype for PSP and additional screenshots!

Sony gave the PSP a new lease on life with the launch of the slimmer PSP Slim and Lite, and now it has aided the handheld’s sales prospects by making Skype available on it. Skype will add an entirely new dimension to the PSP by allowing gamers to make free calls over the internet to other Skype users across the globe. PSP owners will also have the option of calling any landline or mobile phone anywhere in the world at a small cost. The long rumored PSP Phone might not become a reality, but the addition of Skype should satiate communication-thirsty PSP owners.

PSP-2000 owners will have to download the 3.90 firmware upgrade to use Skype. All you need to do is connect to the internet using the PSP’s Wi-FI, attach a PSP headset ($19.99) and the PSP-2000 headphone’s remote control, and save the Skype application on a Memory Stick Duo. Then you are all set to use the app, which can be accessed through the XMB menu’s Network option. Just to remind any ecstatic PSP-2000 owners, if you don’t have an existing Skype account, make sure to register on another Skype device beforehand.

Today, January 7, 2008, at CES, internet voice service Skype has just announced its expansion strategy – a plan that involves the PSP. According to a gamasutra report, Sony has confirmed that a late January firmware update will allow PSP users to partake in Skype’s for-pay and free voice services. The service will include contact more »