Is Yahoo Messenger 10 a real Skype rival?

Yahoo introduces the new Yahoo Messenger 10 that appears to put a bit more emphasis on real-time communications with several new video-related features. Folks are asking whether this might be a strong competitor to Skype. Well we will try to figure it out.

VoIP and PC-to-landline calls aren't new to Yahoo Messenger, but the icon that calls out video chats is. Most of the major IM clients support voice-over-Internet calls with Webcams. It is Yahoo's attention to video quality makes this build a closer competitor to Skype for Windows, which is a VoIP client first, enriched by chatting, file sharing, emoticons, and games. Yahoo Messenger (and Windows Live Messenger, and so on, for that matter,) are chat apps at the core that have layered on other P2P features.

Skype is still ahead in terms of total features, like screen sharing, its most recent contribution to the VoIP community. However, the Web chatting experience was good enough on Yahoo Messenger 10 in our tests that we might prefer to use it to start a casual video call if the app is already running, rather than fire up Skype. Admittedly, our tests were limited by the callers' proximity to each other, fast data connections, and strong computing configurations. We'll need to keep up the calling with a cross-section of international users to get a more accurate litmus. Since the improved video calling only works with other Yahoo Messenger 10 users, we may have to wait for further adoption to test these theories.

The call quality was clear and the videos were as crisp as our hardware allowed. Chatting and file sharing, however, slowed to a crawl as the call progressed. This seems to be the reverse of Skype, in which chatting has, in the past, often transmitted faster than the voice packets. Again, being in the same city, let alone the same country, could at least partly explain the reversal.

In addition to both parties needing Yahoo Messenger 10 on their Windows computers, there are some basic system requirements. You'll need Windows XP or better with a 1GHz CPU processor and 512MB of RAM. Your broadband internet will require a minimum of 300Kbps download speed and a minimum of 128Kbps upload (test both here). Then there's the video card. You'll need at least 96MB memory. A Webcam is mandatory to output video calls, but not to see a buddy's video. However, you will receive an alert if you don't have a Webcam. The final ingredient we'll mention is that the latest version of Microsoft DirectX must be installed.

Briefly, some of the other video features include toggling the sound on and off and shifting the position of the Webcam windows on your screen. These convenience tools worked well and gave the application some depth; we also liked being able to transfer files in full screen mode, even though photo transfers were slow.

One more complaint: The new Yahoo Messenger 10 doesn't appear to play nicely with all third-party IM clients. We noticed when chatting with a buddy who uses Digsby, that each line we type was replicated in the chat window. Odd, yes, and also irritating over time. But not all users chatting between Yahoo Messenger 10 and a different chat client will encounter problems, but if you do, let me know.