The device, an MSN-branded version of Motorola's Talkabout T900 two-way pager, features a compact keyboard and a display that fits four lines of text. Arch Wireless will provide wireless services to users of the pager.
Users can send and receive Hotmail e-mail messages from the pager. They can also sign up for Microsoft's MSN Mobile service, which delivers stock quotes and news alerts, as well as enabling users to send and receive instant messages from an MSN Messenger account.
Microsoft is targeting the pager at teenagers and families who want to stay connected to their Hotmail accounts when away from a PC.
The device competes against similar products that allow users to send and receive messages with e-mail accounts from AOL Time Warner's Internet service, as well as those from Yahoo and Earthlink. Motorola said more than a million people use its Talkabout T900 for two-way communication with other service providers.
AOL's Mobile Communicator pager, which was released last year, offers similar features to the latest MSN device, although it comes with a steeper price tag. Mobile Communicator costs $99.95 (£68.50) - down from its initial price of $329 - and the service costs $29.95 a month, on top of AOL's monthly fee.
The MSN two-way pager costs $59 for US customers who subscribe to a year of wireless services from Arch Wireless at $19.95 per month. Without discounts, the pager costs $159.
Service plans will range from $14.95 to $24.99.