Hotmail: The new Gmail?

Microsoft hopes its new Hotmail overhaul will update its email service's anything-but-hot image — and some critics are sold

Could Hotmail usurp Gmail?

Microsoft released plans Tuesday to revamp its free email service Hotmail — still the world's (if not America's) most popular — to compete with Google's surging Gmail. Plagued by perceptions that it's out-of-date and swamped with spam, the service admittedly lacks features people crave, says Microsoft vice president Chris Jones. The makeover, scheduled to go live this summer, offers a new array of functions, letting users manage their inbox more deftly (clicking "Sweep" to vamoose spam) and viewing videos within an email, for example. But will it be enough to re-crown Hotmail king of U.S. email? (Watch a video preview of "the new Hotmail")

Hotmail is actually hot again: On many fronts, "the new Hotmail beats Gmail hands down," says Preston Gralla in Business Week. It has better "social network integration," allows users "to view embedded media content" right in their inbox, and is "easily the most elegant-looking of any Web-based mail service." Gmail's still "excellent," but "if you've never used Hotmail before, or swore off it in the past, now is the time to take a new look."

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