Microsoft has released a Windows Phone 8 version of the official YouTube app, with a new design that takes advantage of Windows Phone 8 features.

Now available from the Windows Store, the WP8 YouTube app brings the ability to pin videos, playlists, channels, and searches as Live Tiles on the Start screen. Unlike iPhone, you'll also be able to just listen to a video in the background rather than having to keep the app loaded - a very nice feature for music specifically. The typical sharing is also found within the app: you'll be able to send the latest Psy video to friends of social networks, email and text. In addition to those features, you'll find a new interface for navigating the massive video network.

Furthermore, if you have children, Microsoft has included the ability to pin the YouTube app to Kid's Corner and limit children's access to certain content with the YouTube Safety Mode. 

The last version of YouTube for Windows Phone was shoddy to say the least, consisting of just a web page. Microsoft says it will further release an update for Windows Phone 7.5 in the coming weeks, keeping all of its users in the loop with features.

In early-January, Microsoft claimed Google was acting as a barrier to a decent YouTube application for Windows Phone. According to the Redmond-based company, YouTube wasn't giving Microsoft access to the full YouTube API to "enable a first-class YouTube experience on Windows Phones".

Both companies have apparently now reached an agreement. The update is now available on the Windows Store for all Windows Phone 8 users. Early users have given it a 3/5 rating.