As part of the new Wave 3 update, Windows Live Hotmail was announced back in 2008 to have “ever increasing storage” – according to the mailbox size at the end of each month. Some call it “unlimited storage”, but Microsoft had been careful to not use this phrase. Our friend PicturePan2 from LiveSino.net noticed that the current maximum mailbox size for Hotmail is 500GB, and this includes email accounts as part of Windows Live Admin Center, Office Live, and MSN Premium. Want some proof? Here are some screenshots from PP2:

1. First up is a screenshot from the good old MSN Explorer, where you’re able to check your inbox folder sizes. Note where it reads Max: 512000MB (translates to 500GB)

2. Secondly we have a screenshot from Office Outlook Connector, where it shows you the size of your Hotmail mailbox as well. Another proof of 500GB here in the new Outlook 2010 Backstage view:

We recall that Hotmail’s storage space will be “ever-increasing as required at the end of each month, subject to abuse control.” It is said that you will receive an automatic alert when your mailbox is rapidly reaching the limit before the end of month, asking you to “slow down”. However, personally I have not yet heard of anyone who are close to reaching this limit, so it is not yet known what will happen when you do reach 500GB. After all, 500GB should be plenty of space for most people out there!