"Disabling saving of chat history is no longer supported in this client. All new chats will be archived in Gmail. "
Learn more - support.google.com/talk/answer/161925
Don't know what to say but I don't think it is a good move from Google. Don't understand the reason behind this sort of move. To save or to not save my chat history, it should be one's personal decision. I personally don't like this move from Google.
And when I tried deleting all those chat records from my Gmail account, I again got this message -
"Because it is part of hangout, this conversation has been removed from your gmail inbox but will still showup in other hangouts apps and other chat windows "
What is happening here? What sort of privacy is this from Google?
Just not done well !!!