In their infinite wisdom, Microsoft has disabled MJPEG and H.264 encoding on USB webcams for Skype in their Adversary Update to Windows 10, leaving only YUY2 encoding as your choice. The supposed reasoning behind this is to ensure that there is no duplication of encoding which could lead to poor performance; ironically the result of this change is poor performance for the majority of users such as Josh. Supposedly there will be a fix released some time in September but for now the only option is to roll back your AU installation, assuming you are not already past the 10 day deadline. You can thank Brad Sams over at Thurrott.com for getting to the bottom of the issue which has been plaguing users of Skype and pick up some more details on his post.
"Microsoft made a significant change with the release of Windows 10 and support for webcams that is causing serious problems for not only consumers but also the enterprise. The problem is that after installing the update, Windows no longer allows USB webcams to use MJPEG or H264 encoded streams and is only allowing YUY2 encoding."
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