After the latest OS X system update, Macbook Air 2013 Webcam no longer working on Chrome/Skype.
Solution
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Download the attached file.
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Go to Finder>Go>Go to Folder
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Copy and paste this into the search bar: /Library/CoreMediaIO/Plug-Ins/DAL/
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Open the folder and move the current item in there (should be AppleCamera.plugin) to the trash.
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Replace that file with the new one (the one you just downloaded)