Microsoft is to replace Xbox live voice chat feature with Skype, as it aims to put the internet telephony service at the centre of its communications.
A report from CVG cites a person familiar with the matter saying that Microsoft will be "consolidating all their communications technology" around the Skype platform.
This means that Skype will become the default chat service on the next generation Xbox console as well as on PC and tablets, the person said.
He added: "You might jump to the conclusion that we'll see asynchronous voice and video messages in next-gen Xbox Live".
Microsoft bought Skype for $8.5 billion in 2011. In November, Microsoft announced it was preparing to close its instant message chat service MSN and replace it with Skype's messaging tool.
A recent job advertisement revealed Microsoft was seeking a user interface designer for the "next gen Xbox". The job location was said to be at Microsoft's UK-based Skype offices.
"The team you'll join is responsible for Skype in the living room (broadly the home), across various devices but with a focus on the large screen and the next generation of Xbox," the job ad reads.