Dell buys high-end gaming PC maker
Purchase of Alienware underscores importance of gaming market to PC maker
By Chris Morris, CNNMoney.com staff writer

SAN JOSE, Calif. (CNNMoney.com) - Looking to boost its standing in the eyes of enthusiast gamers, Dell has announced plans to purchase boutique PC maker Alienware.

The purchase will boost Dell's gaming-centric computer line and gives the company an established name that has tremendous recognition. Along with VoodooPC and Falcon, Alienware is one of a select few companies that has specifically targeted gamers in the past.

Terms of the deal were not disclosed.

Recognizing the lucrative potential of hardcore gamers, Dell has expanded its own line of high-end PCs in recent months. In January, the company began selling the latest in its XPS line, with price tags reaching nearly $10,000. Enthusiast gamers tend to spend significantly more on their machines than typical desktop users.

Dell (Research) said Alienware will continue to operate as a separate unit, maintaining its brand as well as its product development, marketing, sales and technical support staff. Further, the management and founders of Alienware will continue to operate the company.

Whispers of Dell's purchase began earlier this month after a blog post by an Alienware rival executive. Dell later downplayed the rumors.

The deal will also allow Advanced Micro Devices (Research) to gain access to Dell, after years of being rebuffed. Dell is the last OEM PC manufacturer that ships solely Intel (Research)-powered machines. Alienware has been using AMD chips for some time.

Dell, however, has not announced any plans to change its core business model.

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Click here for Chris Morris' Game Over column. Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.