No, skype doesn't work on my Transformer Prime, either. I can see the video sent to me, but the person on the other end can't see the video from my Transformer Prime. After verifying skype settings, turning off and on, resetting, rebooting, deleting cache, force stopping, checking settings, trying the front camera and back camera, uninstalling and reinstalling, I just gave up.
Video calling on Skype is a no go. Won't work.
The voice works. And I can see video sent to me. But when I try to turn on the video it tries and then says video isn't on and to turn on the camera, which doesn't work, and then gives me the same message over and over again.
Maybe it will work after the ICS upgrade.
If not, maybe the way to fix Skype is to return the Transformer Prime and buy an iPad. I hear it works on an iPad. LOL