Yahoo! Changes the IM Picture

By adding video to its instant-messaging software, the portal is hoping to leapfrog MSN -- and maybe get the jump on AOL

Who says nothing is happening in the Internet world except pink slips? On June 26, Yahoo! announced that it's offering new instant-messaging software that incorporates a Webcam into IMing. In addition to a pop-up box with text in it, users can now send camera shots of themselves instantly over the Net. That gives the struggling portal a jump on IM rival Microsoft, which won't release a video-enabled IM system until October. It could also help Yahoo! in its long-running battle with IM giant America Online.

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