Xbox 360 owners that have been dying to use their Kinect with a Skype application for their Xbox 360 may not have to wait much longer. Sources tell us that development of the Xbox 360 version of Skype is on track and nearing completion.

We are told that it is close enough now that deployment with an expected spring update is a real possibility. While it isn’t certain yet how Microsoft intends to offer and use the Xbox 360 version of Skype, we suspect that it will be an Xbox Live Gold user feature.

If it does not make the spring update, it is expected that it could then arrive in the fall or winter update that has yet to be determined. It has also been suggested that the Skype for Xbox 360 announcement is likely part of the content announcements planned for E3.