Microsoft announced Windows Live Hotmail account now offer a storage capacity of 5GB.
The new capacity will be more than double the previous amount of storage offered by Hotmail. When Windows Live Hotmail launched earlier this year, it offered users two gigabytes of e-mail space.
Gmail, which has literally been increasing user e-mail storage every day for over a year, currently offers around 2.8 GB of free storage.
When Gmail debuted in 2004 with one gigabyte of free storage, Microsoft's free Hotmail service only offered two megabytes, a meager 0.2% of Google's then-unheard-of storage space.
Intense competition forced Microsoft to step up its game and continue increasing e-mail capacity. In May, it launched a re-branded version of its service titled "Windows Live Hotmail", with two gigabytes of free storage. It was the first major response to Gmail's dwarfing level of capacity. However, many legacy users found their entire account deleted by not switching over to the new Hotmail in time.