Utilizing the Global IP Solution's VideoEngine, Yahoo! Messenger will now support free video calling to all Yahoo! Messenger users. Over 133 users worldwide can now take advantage of Yahoo! Messenger 10 which includes high-quality video I witnessed a few weeks back. I took some footage below of the service and was very impressed with what I saw at GIPS San Francisco headquarters.
GIPS has been a leader in the audio and video CODEC space and I still remember sometime around 2001-2002 when I met with them at ITEXPO in San Diego to hear their PDA CODECS which allow for VoIP on mobile devices. This was pretty big news at the time and it took a short while for the company's solutions to catch on after that point.
From what I saw, the video quality of this new Yahoo! solution is better than Skype - even in HQ mode. But I make this point with some hesitation as it is not fair to compare two different services if you don't see them side-by-side. Besides the point of this news to me is not who might have the best quality today, it is that the video market is indeed heating up and there is now more competition in the market which is always a great thing.