Windows Phone version of Skype receives update to reduce the size of the fonts on screen
The same thing applies with messages. Following the update, users can now view more content from a message on the screen, at one time. Skype is calling the smaller fonts a "compact" design. You can click on the slideshow to see the difference before and after the update to version 220.127.116.11.
While this is a step in the right direction, some Windows Phone users are still wondering why the company that owns Skype (which is Microsoft of course) can't make a version of its own mobile OS that tops the competition. It is the same thing that Office users are wondering about, although Microsoft seems ready to address that issue.
source: Skype (Windows) via WindowsCentral