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Until May 10 2005 the special feature of including dots in the email address wasn't available, but with growing competition from other free email providers like Gmail and Yahoo, this feature made available to users.

On November 18, 2004, Hotmail began offering email addresses from several country-specific domains. Now users can register a @hotmail.co.uk address. MSN had run auctions on eBay for popular addresses and the money had been donated to the NSPCC.

Hotmail offers many of its members 250MB of free e-mail storage, be it used for sent or received e-mail. For a fee, customers can get 2GB of storage. In contrast, Yahoo! Mail offers 1GB for free currently, to all of its members with 2GB offered at a price, Gmail from Google offers over 2GB for free.