Microsoft is bolstering its attack on Gmail by scrapping its Hotmail service in favour of a revamped Outlook.com, although the 350 million users will retain their email addresses.
More than 1 million people have already switched to the new service, launched just six hours ago.
Microsoft claims its new service, available to preview at Outlook.com, will revolutionise the way people use email and be the first major improvement in eight years.
Although it still claims 350m users worldwide, Hotmail has been overtaken as the leading email provider by Gmail, which launched in 2007 and claims to have 425 million users.
According to the web metrics firm ComScore, Hotmail still boasts more traffic than any of its rivals. In June 2012, Hotmail had 324 million monthly visitors, compared to 290 million at Yahoo mail and 278 million at Google’s Gmail.
But Hotmail users will be invited to transfer their accounts to the Outlook.com portal, which will offer a less-obtrusive email experience, with fewer display ads and new connections.
Users will be able to see status updates from friends and followers on Facebook and Twitter with a new feature on the revamped email site.
It will also help tackle the problem of “cluttered” inboxes by sorting messages automatically into categories, making it easier for users to distinguish between emails from contacts, newsletters, package delivery notices, social network posts and other categories.
Microsoft corporate vice president of Windows Live Chris Jones said: “We are giving you the first email service that is connected to Facebook, Twitter, Linkedin, Google, and soon Skype, to bring relevant context and communications to your email.
“In the Outlook.com inbox, your personal email comes alive with photos of your friends, recent status updates and tweets that your friends have shared with you, and the ability to chat and video call – all powered by an always up-to-date contact list that is connected to your social networks.”
While Microsoft is urging users to upgrade, subscribers can stick with the old system if they wish – at least for the time being. Those who switch keep their @hotmail, @msn or @live.com email address ending, but can also add an @outlook.com address to their account.