Alienware Growing or Selling Out?

Just read this article in Yahoo, about Alienware and their gaming pc’s called Alienware Racks Up Gamers, and Millions. It describes how they started out with just a little bit of money and the idea that gamers would pay more for high powered gaming pc’s. Apparently, they were correct, and since that time, other manufacturers, like Dell, have been upping the power of their gaming systems, the XPS, in a bid to do the same.

Banks had laughed at their concept of selling expensive PCs for video gamers at a time when other computer companies were cutting prices to grab more customers. The fact that the new company, Alienware, took its name from UFO lore didn’t help either.

Aguila and his friend, Nelson Gonzalez, had just $10,000 between them.

“I was there and all the walls were black … and the phones were sitting there and not ringing. And I’m thinking, ‘What did I do?’” said Aguila.

But 10 years later, Miami-based Alienware Corp. is widely acclaimed by video gamers and on track to hit $225 million in sales this year, up from $172 million in 2005. The success of the privately held company has lured others, including industry leader Dell Inc., to target the high-end market, too.

And now that they are a branching out into business workstations, some people are saying they are losing their focus, but how are they supposed to grow if they don’t add on to their business?

Alienware has branched out a bit by offering 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 percent of sales, Gonzalez said.

Still, that expansion has led some to complain that Alienware is losing its focus on its core, video game-playing customers.

“Especially in that audience, the notion of street cred plays a factor in what these consumers will buy. These niche players do run that risk. But at the same time these companies have to grow their business,” Shim said.

What do you all think? A friend of mine has one and it’s great, fast and pretty cool looking. I may replace my laptop with one in the future, but that probably won’t happen for a year or more, or I may go for battery life and a quieter laptop, my current one is pretty loud because of all lf the fans needed to cool it. Check out Alienware Exclusive Savings here.