A little while back Skype announced that it had enabled video chat for the Android app for only a select few handsets that included the Xperia neo and Xperia pro. The Xperia PLAY was left conspicuously off that list, but that has now been remedied in the latest Skype update.
A whole host of phones now have video chat support including the rest of the Xperia lineup that includes a front-facing camera, namely the Xperia PLAY and upcoming Xperia mini pro and Xperia ray. The updated app is available to download on the Android Market right now.