Dell Abducts Alienware

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The Texas-based computer maker not only has a hot brand with appeal to big-spending hardcore gamers, but a line of products with AMD processors instead of the Intel chipsets that dominate Dell’s computer lineup.

Dell picked up an infusion of cool for an undetermined price tag with its acquisition of Alienware. Though Alienware does sell PCs for other markets, they are best known for their gaming hardware.

A PCMag.com report cited Alienware’s desire to expand into more markets, a desire only the influx of lots of ready cash could fulfill:

“We were at a crossroads, we were at a point in time where we had to make a decision to go public or to perhaps merge with another entity if it made sense,” Gonzalez said. “There were very few organizations out there that we would do this with-and there’s only one that I could think of, and that was Dell, just because of the similarities in terms of the direct business model, and that we have a lot of similarities with the [company]. The problem is that we were at these crossroads, we needed to raise capital, and we had never raised capital at this company from day one.”

“We needed to get bigger, and we needed to release more products,” Gonzalez added. “We do our own designs and our own form factors, and that costs a lot of money, frankly.”

Alienware gains from being part of Dell’s supply chain management. The article noted how customers would have to wait several weeks for the latest hardware like nVidia to be available in Alienware machines. That cycle should be considerably shorter now.

Oddly enough, Dell just announced a very high-end gaming machine in its XPS line. Called the Renegade and hand-painted by artist Mike Lavalee, the gaming PC lists a price tag of $9,930. This keeps Dell directly in competition with its new acquisition, a situation that looks strange on the surface.

Dell has to hope that its brand won’t work against it with this purchase. While a $9,000 price may make the typical PC user blanch with disgust, enough people will pay that kind of price for an Alienware machine, or a competitor’s like VoodooPC, because of features that a Dell does not offer.

To a lot of gamers, Alienware is very cool. Dell, not so much.


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David Utter is a staff writer for WebProNews covering technology and business.

Dell Abducts Alienware
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