The company has also released a beta version of Skype for Google Android and other Java-enabled phones, and said a version for Apple's iPhone is in the works. Skype also plans to increase its focus on business customers this year.

Skype 4.0, which has been for several months, will be released in early February for PC users, with an equivalent for the Mac OS due later this year, Scott Durchslag, Skype's chief operating officer, told reporters at the Consumer Electronics Show Thursday.

The update includes a new codec that can handle video and audio twice as efficiently as the current version, according to Durchslag, giving smoother video and clearer voice calls. Skype 4.0 will support 30-frame-per-second video for people on fast enough connections, he said.

"The only thing I would caution is don't forget it's on," he joked, as he demonstrated the software with a video call from Europe. "Luckily I'm at this press conference and not in my shower this morning."

The client displays video in full-screen mode and the interface has a large green button that makes video calling more prominent. It also supports picture-in-picture, so the caller can see himself and the person he is calling.