Dell Lays Off On XPS Line, Turns To Alienware

By Dee Chisamera
12:10, May 14th 2008
68 votes
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Dell Lays Off On XPS Line, Turns To Alienware

If people want gaming PCs, Dell is going to deliver just that! The computer maker had a change of heart, and decided to focus on its Alienware sales, in XPS line’s detriment. Dell acquired Alienware in March 2006, but it is for the first time that Dell favors Alienware, rather than XPS.

This is part of the company’s new marketing strategy, after Alienware sales have been left behind by XPS sales. The decision comes to contradict the initial expectations after the acquisition of Alienware, which were not to mix them, and use two different lines.

Nelson Gonzales, Alienware chief executive, said at the time of the acquisition, as quoted by PC Magazine: “Dell is going to do what they do. I’m sure they have no plans of eliminating the XPS. They’re going to have their lineup; we’re going to have ours.”

According to The Wall Street Journal, Dell will phase out four gaming systems of the XPS line, leaving Alienware as its sole representative in gaming PC. The gaming design and development unit of the Round Rock, Texas will oversee the seven Alienware models, the same newspaper reported.

However, Dell spokesperson Anne Camden told PC Magazine: “Is Alienware going to be our gaming brand going forward? Yes, this is true,” however, she added that many of the XPS products will keep their brand name.

The reason behind this decision could be that the XPS line ended up competing with Alienware, instead of complementing it. And that’s bad for business! As XPS started to cut deep into Alienware's market, it became clear that the two brands had turned from allies into rivals.

The situation is somewhat similar to that of HP, who bought VoodooPC in September 2006, and now sells its Blackbird game-PC as having “VooDoo DNA.”



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