Viral Video: Hotmail Updates From the Dark Ages

Well, it took Microsoft long enough to update the features of Hotmail, which the company is announcing this week.

Some new doodads include better filtering, more social integration, lots of multimedia content, such as photo slideshows and–perhaps most importantly–the ability to use Microsoft Office software documents like PowerPoint within the online email service.

It’s a wonder it took so long for Microsoft (MSFT) to upgrade and innovate–Dear Windows Live Hotmail team, conversation views in email is not new to anyone but you–the service, although it remains No. 2 after Yahoo (YHOO) Mail. Google (GOOG) Gmail is third.

Microsoft, which blogged about the changes here, has called the whole shebang of releases in its Window Live services “Wave 4.”

Wave 3, um, was in 2008.

Still, here is a very good Microsoft video about it all, though I am not sure what’s up with the orange-dot lady: