Dell Buys Alienware

The world’s largest computer maker Dell is buying gaming-computer firm Alienware whose PCs are famous for their “Alien” UFO style look.

Dell said, Alienware will operate as a wholly owned subsidiary following completion of the transaction and will maintain its own product development, product marketing, sales, technical support and other operations as well as brand. The management and founders of Alienware will continue to operate the company as a standalone unit of Dell.

“This acquisition makes sense because the space that Alienware plays in is a high-growth segment of the PC business. It’s also a high margin segment,” said IDC analyst Richard Shim .

One risk though is that hardcore gamers may think that Alienware has lost its street credibility by making a deal with a mainstream player like Dell, he said.

“It will be interesting to see what Dell does. If they are smart, they will leave the brand alone. If the brand is tainted in the eyes of gamers, then the acquisition won’t live up to its potential,” he said.

“Alienware’s products are an excellent complement to Dell’s own line of high-performance computers designed for gaming, enthusiast and media content customers. In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals”, said Michael Dell, chairman.

Nelson Gonzalez, CEO of Alienware said, “Alienware has a legacy of success designing the highest-performance PCs using bleeding-edge technologies and innovative industrial design. We believe that Alienware will realise significant advantages from Dell’s world-class supply chain and operational efficiencies. They will allow us to continue to satisfy our core customers with the most innovative and highest-performing PCs, and ultimately extend the reach and appeal of the Alienware brand.”

The move also means that Dell will theoretically be selling AMD chip-based machines, something, which it has never previously offered.