Announced last month at CES (and now being demoed at the Mobile World Congress in Barcelona this week), Skype is now available on the Sony PlayStation Portable with software version 3.90 in the US and Europe. Villu has already heralded its arrival on the main blog (there’s also a nice video there of John Koller, senior marketing manager for PSP at Sony, demonstrating Skype). I’ve been playing around with it and think it’s pretty cool.

It’s important to note that Skype will only work on the PSP Slim & Lite (PSP-2000) version of the PSP and not the original, because the newer PSP has more RAM. You’ll also need either a Go! Cam or a headset and corded remote (which are currently sold seperately but will soon be bundled together) so you’ll have a microphone to input your voice.

With Skype on the PSP you can make and receive Skype calls and make SkypeOut calls when you’re connected to an internet connection via WiFi—I can see it as a good way to talk to the friends you play networked games against on the PSP, so it’s easier to set up games (and, um, trash-talk?).

Some screenshots after the jump.

The Skype application is in the Network menu off the main menu.

After selecting the Skype icon, you can choose to log in with your Skype name and password or create a new Skype account if you don’t have one (or want one to use just on the PSP).

Where you sign in. You can save your information to sign on automatically in the future.

You type in your Skype name and password using the standard PSP text entry method, which is similar to inputting text on a mobile phone and pretty intuitive (note you can’t conduct Skype text chats on the PSP—text entry this way for chats would be a bit slow).

You then get signed in…

And then you’re on Skype—in addition to having a contacts list through which you can call friends, you can also edit your profile, view your call history, dial SkypeOut numbers directly, and change your settings in the Tools menu.

The Tools option expanded.

Here’s what your contacts list looks like—the list scrolls down and individuals’ Skype photos and status messages are displayed.

The guys from Skype and Sony who put the Skype software together did a really nice job. I particularly like the Contacts part of the interface—it’s very easy to scroll through and looks cool when your contacts have photos. PSP Slim & Lite users, you can download software update 3.90 through the Settings menu of your PSP.