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Dell Acquires Alienware, Denies AMD Switchover

Dell Acquires Alienware, Denies AMD Switchover

March 23, 2006 | By David Jenkins

March 23, 2006 | By David Jenkins
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Rumors that PC hardware seller Dell were interested in buying gaming PC company Alienware have proven to be correct, with Dell officials confirming that the company has agreed to buy Alienware Corp. for an undisclosed sum said by Dell to be financially immaterial.

According to a statement privately held Alienware will continue to operate as a separate unit from its Miami headquarters and maintain its product development, marketing, sales and technical support staff as well as its brand.

Dell has recently been attempting to boost profit in its consumer business, which accounts for 15 percent of revenue, after slower-than-forecast growth last year following severe discounts on its home PC systems. With gaming PCs selling for many times more than other set-ups the company has recently been expanding its XPS range of high-end PCs and no doubt sees Alienware as an obvious way to make further headway in the market.

According to Dell chairman Michael Dell, around 20 percent of PC users (40 million people) are gamers and the company is keen to capitalize on the market. The news of the acquisition has increased speculation that Dell may begin to offer PCs using AMD processors currently believed by most gamers to hold an advantage over Intel processors, which Dell currently uses exclusively in its own machines.

Dell spokesman Jess Blackburn stated to the Reuters news agency that the company had no plans to use AMD processors, saying that, Our strategy in terms of suppliers that we work with is unchanged. Nevertheless, AMD stock rose 2.1 percent in extended trading.

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