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Just like the Google+ app, you can create a hangout by scrolling through your contact list or by using the search field at the top.
Create a hangout with up to 10 people. The app automatically switches to the person who is talking, but you can still see everyone in the hangout at the bottom.
When you get an incoming video call, you can answer or decline at the bottom.
You can always change the profile photo that everyone sees by going through the settings.
Browse through your hangout history to remember old text messages or look at shared photos, among other things.