Extremely poor Xbox One Video Quality

Having problems with Skype video quality from the Xbox, extremely grainy video while the Audio is just fine. I purchased the Xbox as a replacement for facetime.
At my home we have a 120mb comcast business line. Speed tests show 80-90 dl, 30 up. At the office I have a iphone5s that using wireless, 50mb centurylink. Facetime is crystal clear between the two locations. It is only Skyping with the Xbox One the quality is disgusting, not sure what the cause may be. I assumed Skype with the Xbox One could do HD video, did I purchase this in error.
Anyone else having similiar issues, or solutions?

Thanks for your feedback. We are tracking a similar (if not the same) issue on this forum post. We have been in contact with some users and are continuing to investigate the problem.
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