Dell Inc. acquired Alienware Corp., known for branded, high-priced, high-performance gaming computers, on March 24, 2006 for an undisclosed amount.  Alienware will operate as a stand-alone unit within Dell, keeping one of the original founders, Nelson Gonzalez, on board as a chief executive.

The Alienware brand represents extremely fast computers that computer gamers seek because of the speed and enhanced graphics that enable the optimum gaming experience. The speed comes from the relationship that Alienware has with Advanced Micro Devices, Inc. (AMD), which creates some of the most powerful chips available for computers. Also, Alienware designs the computer and monitors to have a sleek look to fit the company's hip image with gamers. Meanwhile, Dell exclusively uses Intel chips in their more simplified computer packages. The contrast between the two types of computers manufactured is quite noticeable.

Alienware will be able to take advantage of the supply capabilities that Dell brings to the table to streamline its production process and increase productivity. Dell will benefit from increased productivity and sales of the gaming computers that can sell for up to ,000. Dell also sees the Alienware acquisition as an addition to its existing gaming line, the XPS. And Dell believes that the two gaming computers will complement each other rather than compete with each other because Alienware customers are very specific in their choices and would not consider Dell computers in the first place. Other competition that is trying to gain market share away from Alienware are VooDooPC, Falcon Northwest, and there are always gamers who build their own computers. Thus, Dell is now expanding its share of the gaming hardware marketplace, which is expected to saturate 44% of North American households by 2011, up from 37% currently, according to research firm Forrester.

The average Alienware customer, according to Nelson Gonzalez in an Entrepreneur.com interview, are professional males between the ages of 18 and 50 making over ,000 a year with multiple computers in their home. It is a very specific customer that Alienware attracts and who are willing to spend more for computers of greater quality. These customers seek out Alienware because the Alienware brand represents a high quality gaming machine within the industry.

The combination of a niche brand such as Alienware and a computer industry giant like Dell may leave some wondering how consumers may react, especially computer gamers who are brand loyal to the anti-mainstream Alienware. Its customers like quality machines that are made to specific standards and may not associate this standard with Dell.  Dell apparently appreciates the strength of the Alienware brand.  According to Dell chairman Michael Dell, "In addition to offering high-quality, high-performance products, Alienware has tremendous brand appeal with consumers and creative business professionals."

To keep the Alienware brand a strong and viable one within the gaming community, Dell must allow Alienware to continue on as it has in the past and not try to influence its products. These niche consumers will notice if the product decreases in quality or begins to become a cookie-cutter computer to shove out in mass and the brand will suffer from it.  In addition to the quality product, the Alienware brand is also associated with an "unparalleled level" of customer service, according to Michael Gartenberg, a Vice President at Jupiter Research.  Its high level of customer service aids in Alienware's rapid growth because customers know any issues or problems will be handled immediately. Alienware has three hundred employees - not contractors - at a call center in Costa Rica ready to handle all customer service inquiries. This excellent customer support makes the Alienware brand even stronger to consumers and the industry in general.

The deal may end up synergistically benefiting both companies and elevating the Alienware brand to even loftier status or it may end up damaging the Alienware brand which was successfully developed as the anti-computer-in-a-box brand.  Only time will tell. The future success depends on whether computer gamers will feel that Alienware's unique brand has not been damaged by its sale to an industry giant.