Population Statistic: Read. React. Repeat.
Thursday, March 23, 2021

I first learned about Alienware Corp. a couple of years ago, while covering the Florida business landscape for Florida Trend. I thought it was a company worth keeping an eye on, editorially, for a couple of reasons: It was a tech company, it was in south Florida, it achieved nine-digit revenue generation via dedicated niche markets, it was a great organic-growth entrepreneurial story. Unfortunately, I never made much headway — the company got into the magazine’s pages occasionally, but never in-depth. I think the business of hard-core videogaming PCs was considered outside the interests of Trend’s core readership.

Now that computermaking giant Dell is buying Alienware, a little more attention might go toward the high-end custom computer biz.

I’d noticed that Dell was really pushing its XPS line, positioning it to encroach upon the territory that Alienware and Voodoo PC had carved out. Despite robust growth, Alienware couldn’t hope to compete with Dell’s resources in the long run, and wouldn’t be able to convince potential investors otherwise. I’m assuming the company’s founders decided to get out while the getting was good.

Despite initial news that Alienware is going to retain its branding and autonomy, I can’t believe Dell would maintain both that and the XPS label. Eventually, one will be abandoned, and I’d bet it’s the Alienware name that goes in the ashbin.

UPDATE: Analysis from BusinessWeek’s Louise Lee suggests that acquiring Alienware is a response to the cool reception XPS has had. Since Dell is known as primarily low-end, the premium-priced XPS was a tough sell; Alienware is an established pricey brand, so that market segment is easier for Dell to reach via acquisition.

by Costa Tsiokos, Thu 03/23/2006 06:03:41 PM
Category: Florida Livin', Videogames, Business | Permalink |

Trackback this entry: Right-click and copy link
1 Feedback »
  1. HP WORKS VOODOO (OUTSIDE THE BOARDROOM)

    Following in the footsteps of Dell’s acquisition of Alienware, Hewlett-Packard is nabbing Voodoo PC, the other notable niche manufacturer in the high-end gaming computer sector.
    I think the jokes about conjuring up corporate black magic, in lig…

    Trackback by Population Statistic — 09/28/2006 @ 11:11:50 PM

RSS feed for feedback on this post.

Leave a comment


PLEASE NOTE: Various types of comment moderation may be triggered once you hit the "Say It!" button below. Common causes for this are the inclusion of several hyperlinks and/or spam words in the comment field. Please do not hit the "Say It!" button more than once. If you feel your comment is being blocked without cause, feel free to email me about it.