Question about Outlook Express

I received this email: "Your Microsoft account is reported and will be de-activated soon
You must renew it immediately or your account will be closed forever.
click below to renew NOW"

The email appears exactly as written eg. missing puncuation, and no explanation, with a clickable link.

What is this all about?

I have heard about Microsoft's desire to eliminate Hotmail, and to replace it with Outlook.  Is this a part of that proposal?  I also know that Hotmail was established originally under the premise (and promise) that it would be free in perpetuity. 

If this is an attempt by Microsoft to eliminate Hotmail, and to force Hotmail users into a paid subscription of Outlook than it is in conflict with the original Hotmail guarantee.

Does anyone know what are the particulars regarding all the above, and specifically why I have received a junk email spam suggesting that my account will be deactivated?