Anyone here own an Alienware machine? They've always been out of my budget, so I've never bought one. link Dell to buy high-end PC maker Alienware By John Pain, The Associated Press MIAMI — Dell, the world's largest computer maker, said Wednesday it would buy Alienware, whose high-end PCs are widely acclaimed by video gamers for their fast performance and sleek, UFO-themed looks. Dell, based in Round Rock, Texas, didn't announce terms of the deal, which will help expand its offerings for the lucrative gaming and multimedia market. Dell said Alienware would operate as a wholly owned subsidiary and will keep its brand name and its own product development, marketing, sales, technical support and other operations. Miami-based Alienware was founded in 1996 by Nelson Gonzalez and Alex Aguila, two childhood friends who have built a cult-like following for their PCs that cost an average of about $3,000 to $4,000. They will continue to run the company as a standalone unit of Dell, Dell said. "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," IDC analyst Richard Shim said. 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'll be interesting to see what Dell does. If they're smart, they'll 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 is on track to hit $225 million in sales this year, up from $172 million in 2005, according to recent projections by Gonzalez, the privately held company's CEO. Aguila is president. Dell revamped its XPS line in 2001 to feature high-powered, high-priced computers to better compete with companies like Alienware and Voodoo PC, another niche player. Earlier Wednesday, Dell launched its XPS 600 Renegade system for gamers starting at $9,930 with a flat panel monitor. "Alienware's products are an excellent complement to Dell's own line of high-performance computers designed for gaming, enthusiast and media content customers," Chairman Michael Dell said in a statement. "We believe that Alienware will realize significant advantages from Dell's world-class supply chain and operational efficiencies," Gonzalez said in a statement. "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." Gonzalez and Aguila didn't immediately return e-mails seeking additional comment. Dell officials also did not respond to a telephone call. Alienware's least expensive laptops and desktops start at around $700, but the top-of-the-line, liquid-cooled ALX models can approach $10,000 when fully tricked out with dual-core processors, hard drives that can store up to a terabyte of data, and state-of-the-art graphics cards. Its machines cost hundreds of dollars more than similarly configured machines from mainstream manufacturers. Alienware has branched out a bit by offering some cheaper computers. It also has growing sales of workstations and servers — not shaped like alien heads — to corporate and government clients, such as Lockheed Martin and the U.S. Army. Gaming PCs, however, still make up 80% of sales. Gonzalez, 40, envisioned a big market for these PCs when he came up with the idea for Alienware, so named because of his interest in UFOs, science fiction and "The X Files" television series. Dell shares rose 14 cents to close at $30.41 Wednesday on the Nasdaq Stock Market, then added 9 cents in late-session trading.
BY...? ohh... ok... BUY... dang grammar checker... Now I see where "ALIENware" comes from... two Hispanics!!!
Yeah, I was PISSED when I saw the headline. What makes AW great is they build with the highest grade components they can get their hands on, and this had me freaked that dell was going to water them down with their own exclusive low-bid deals (the #1 problem I have with major PC makers). But the article did emphasize that Dell wasn't going to get its hands in AW's operation. Hopefully that's true. I'm going to be getting a $4k laptop from them soon and the whole point was to get the thing as high-end as possible. It'd help me out if Windows would get its ass in gear and release the Vista (now delayed to 07)....grr Evan
dell would be buying them so they could have a piece of their profits in the future. they aren't buying them to change them. dell didn't get to where it is by being stupid.
So now AlienWare owners, if and when their PCs have trouble, can enjoy the thrill of staying on hold for an hour and a half just to talk to someone who speaks limited English and will never understand the problem they are experiencing. What a Wonderful World!
It will be interesting to see if Alienware becomes an Intel house like Dell....basically freezing out AMD the for corporate cr@ck rock known as marketing development funds. Nothing says screaming performance in a gaming machine like 'Intel Inside'
That's, sadly, been my recent experirnce. I think it's a bummer, and the practice of Microsoft, and other giants like Dell, buying up smaller competitors is squashing creativity in the marketplace and choice for the consumer. In my opinion.
Please. Simply put, Dell got to where it is today with its vastly superior "touchless" supply chain (including its industry-leading negative cash conversion cycle), ongoing process innovation, and frenzied "what have you done for me lately" corporate culture. Plus, like Wal-Mart, the company passed on the organizational savings to the consumer. If you think the company is gonna let Alienware retain its own supply chain (and therefore the high-end components you expect from Alienware), you obviously don't understand how Dell got to #1 in the first place (or understand economies of scale). This move was more about eliminating a threat than it was "getting a piece of Alienware's profits." (XPS, anyone?) BTW, expect Alienware to become "Intel-only" in the blink of an eye. Joy. Decent news for the company, yet Dell's stock is STILL down.
This acquistion of ALIENware by Dell is great. Dell makes great PC's and Servers and has very good quality and support, something that Alienware lacks. Dell's are great PCs and you usually get a lot of PC for cheap. I have a XPS600 and my buddy has a ALIENware Area 51, my XPS runs circles around his box. The cooling system on the XPS is state of the art and probably the most quiet PC on the market. Even though DELL is a intel shop, I have heard from friends that work for DELL that they are going to release a AMD box. Just my 2 cents...
