HP to Acquire Voodoo PC

mytrip writes to mention a News.com article outlining HP's acquisition of Voodoo PC, the high-end gaming computer maker. Following Dell's purchase of Alienware this past March, it would seem that the big computer assemblers are gearing up for a gaming skirmish. "In the weeks prior to that acquisition, Rahul Sood predicted the looming deal after having similar acquisition-related conversations with Dell Chairman Michael Dell, he later revealed on his blog. Rahul Sood will become chief technologist in HP's game division, and Ravi Sood will take on the role of chief strategist, Rahul Sood wrote on the blog. Voodoo will maintain a presence in Calgary, Alberta, where the company is currently headquartered. The deal is expected to close in November, HP said in a press release."

Comments

Do you have to buy someone?

[CastrTroy]

Do you have to buy someone in order to make a good product? I mean, it's not really that hard to make a gaming PC. I guess by buying someone out, they get to use the name, with brings in customers, but I really don't see the big draw. HP is a big enough company that if they put out a real gaming machine, with really good specs for a good price, I'm sure it wouldn't go unnoticed.

Having said that, what's with all the big companies wanting to get into gaming PCs? That's a very small market, and with all the consoles coming out with HD, I don't see PC gaming getting a larger market (although I don't know if it will shrink). I just checked Voodoo PC, and their cheapest rig starts at $2800. For that price you could buy a PS3, XBox360, and a Wii, oh, and a ton of games, and still come out on top. I realize that there's a few games that are just better on PC (RTS and FPS), but seriously, I don' see a lot of people wanting to spend that much money on a computer.

Re:Do you have to buy someone?

[jimstapleton]

I think part of it is, they are adding a new market segment, without having to do the R&D, and while removing a potential competator, in one fell swoop.

Re:Do you have to buy someone?

[Orange Crush]

Having said that, what's with all the big companies wanting to get into gaming PCs?

My guess would be the higher profit margins. The market may be tiny, but it's still got much fatter margins than the cutthroat bargain PC market where Dell is king and manufacturers fight bitterly over every last penny.

Re:Do you have to buy someone?

[CastrTroy]

I think that high profit margins are what they are looking for, but I can't see a real gamer wanting to buy a computer from HP. The gamer crowd would either build their own, or buy from a small company, so that they don't have the same computer as everyone else. A Ferrari isn't "that" much better than a Corvette, but you know that you will get a lot more stares, and be part of an elite group when you buy your Ferrari. People buy these gaming PCs as status symbols. Once it's just another computer from a giant manufacturer, will they still have the same appeal?