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Alienware going low-end with $1699 gaming desktop

Gaming PCs tend to be some of the most expensive computer systems that you can buy and routinely sell for many times the cost of traditional computers. Gaming PCs also tend to set trends that trickle down into mainstream systems as the high-end components become cheaper.

According to the Wall Street Journal, the gaming PC market is currently worth about $12 billion. To grab its share of this massive market Dell purchased gaming PC maker Alienware in 2006. Rather than integrate Alienware into its traditional business, Dell opted to let Alienware continue to develop and market its own products and simply helped Alienware by using Dell’s massive purchasing power to get cheaper components.

As part of it’s mostly hands off approach to Alienware, Dell continued to develop, market and sell its own line of gaming systems in the Dell XPS line. The Wall Street Journal is now reporting that Dell has said it will begin phasing out four of the gaming systems in its XPS line, moving Alienware into the only high-end gaming computer maker operating within Dell.

Alienware tumbled from the top of the gaming PC heap after its purchase by Dell in part due to competition from Dells own XPS line. Dell recently placed Arthur Lewis, who joined Dell with the Alienware purchase, as the head of its gaming PC division. Lewis said that Alienware was still a premier name in the gaming PC market. Lewis was a vice president with Alienware.

Dell is also going to end the tie-in with World of Warcraft and its XPS machines. Lewis says that Alienware is going to be updating its boxes, which have had the same look for a long time, by using new materials for the exterior of the systems.

Gaming PCs in general for the last several years have for the most part used Intel over AMD due to the typically increased performance that Intel parts provide. Despite this tradition, Alienware has also said that it will be bringing a low-cost (by gaming PC standards) gaming system to market in the next few weeks powered by AMD/ATI.

The new Alienware system will be priced at $1,699 according to CNET. The machine will use a quad-core Phenom X4 9550 processor running at 2.2GHz. Graphics for the machine will be via ATI’s dual GPU HD 3870 X2 video card. The system is reported to use an Asus mainboard with the AMD 790FX chipset.

PC gamers will likely understand what Alienware is going for here -- a lower cost system. Price is one of the places Alienware is criticized the most. Marc Diana, Alienware product marketing manager for desktops says, “We're seeing huge demand from customers. AMD is a good entry point."

Other high-end gaming PC makers don’t echo that sentiment. CNET says that Falcon Northwest reports virtually no demand for AMD based systems according to a company spokesperson.

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$1699?
By FITCamaro on 5/13/2008 1:51:46 PM , Rating: 2
They view that as cheap? And for a Phenom system with a 3870 X2? You can build that system on your own for about a grand.

Honestly Alienware desktops aren't that great. The case may look cool but the airflow is terrible. I'd prefer a Dell Optiplex case to an Alienware one (especially since they use BTX). Clean, cool, and quiet. Then of course there's the huge premium you pay for the name. About the only thing worthwhile is that they do a fabulous wiring job.




RE: $1699?
By 16nm on 5/13/2008 2:05:17 PM , Rating: 5
Yeah, but some people are willing to pay extra to not have to fiddle around with assembling a computer. Some people just want to pull it out of the box and it already be tested and working.


RE: $1699?
By Pirks on 5/13/08, Rating: -1
RE: $1699?
By darkpaw on 5/13/2008 3:49:23 PM , Rating: 3
Everyone that gives Apple crap about high prices pretty much hates on Dell and others for their expensive builds too. Funny, how Apple fans always use the XPS to compare prices too, even though the other PC lines are much cheaper. XPS has always been the eXtreme price system, and they suck just as bad as Apple does for ripping people off.

Some of the XPS laptops aren't badly priced though if bought on sale/open box, especially if bought from the Dell Depot. $999 for a fully loaded M1310 is pretty damn nice.


RE: $1699?
By Pirks on 5/13/08, Rating: 0
RE: $1699?
By darkpaw on 5/13/2008 5:45:37 PM , Rating: 5
Because they use cheap parts? It's not hard to figure out.

Now Apples use cheap parts and charge primo prices for them. It's pretty apparant they are over charging, just look at their profit margins. I can't blame them though, if I had thousands of idiots willing to pay me more for the same thing everyone else is selling for less I'd be happy too.


RE: $1699?
By Pirks on 5/13/08, Rating: -1
RE: $1699?
By cmdrdredd on 5/13/2008 6:32:57 PM , Rating: 3
Apple uses low wattage power supplies for one. Second they Use generic memory for their builds but charge 50% more than name brands you can buy from newegg. Third, they don't offer multichannel analog output for most PC 5.1/6.1/7.1 speaker sets. Their new systems have an optical connection, but this goes largely unused.


RE: $1699?
By Pirks on 5/13/08, Rating: -1
RE: $1699?
By tastyratz on 5/14/2008 7:26:36 AM , Rating: 2
the difference is that apple sells the exact same product for substantially higher prices which only results in larger profit margins. They aren't getting more money because that memory was custom designed for apple, its the same product and they pay the same price as other system builders- they just charge more.

High quality parts and builds regardless, look at the psyclone systems that have gotten media attention lately. You can build a similar or substantially better spec-ed system for much less money.
The same machine that apple considers mid level might be an entry level generic pc.

I will say that I have seen the insides of some mac pro workstations and while those use xeon cpu's and scsi disc's I cannot attest to their consumer marketed machines being the same.

The case designs are excellent, the cases are stylish in appearance, and they run quiet.

Who cares if they have a custom motherboard? so does dell. what about custom power supplies? hp can do that too.
all the big names do the same things... usually its just called relabeling.

Would you pay an extra hundred bux for a pc power supply that's dimensionally 1/4 in shorter or has 1 extra plug? custom doesn't matter when its consumer pre assembled machines and its certainly not an excuse.
All this in the end still results in proprietary hardware (less than it used to but still prominant) that's charged substantially more than its competition. Now that they are using intel cpu's its just glaringly obvious.

But they have funny commercials, so there must be some magic right?


RE: $1699?
By Pirks on 5/14/08, Rating: -1
RE: $1699?
By daftrok on 5/15/2008 12:34:27 AM , Rating: 4
FACT:
1) Apple uses the same CPU, GPU, RAM, HDD, screens, wifi card and bluetooth cards as the major PC retailers (Dell, HP, etc.)
2) Apple utilizes space and energy saving techniques to make their computers and laptops more compact and energy efficient, however this does not make the laptops significantly more costly, but rather more cost efficient.
3) Their Leopard OS has been priced at $129

OPINION:
1) Though the Mac Mini is indeed energy/space efficient, it is severely crippled by its small HDD, slow CPU, slow GPU, and high price tag; a 1.83 GHz C2D, 80 GB HDD, 1 GB RAM, Intel 950 and Combo Drive for $599 is a rip off no matter how many ways you look at it. Make it 2.1 GHz C2D, 250 GB HDD, 2 GB RAM, 8400M GT video card and Super drive for $499 and that's a good deal.

2) The iMac is good for a simple All in One solution, however how much simpler is it really? You have the tower and the screen together and thats about it. Most monitors today have built in speakers and webcams can be clamped to the top of the monitor with ease. On top of that, its a desktop. Why does it matter if a couple extra wires are being thrown behind your desk? And if its space that's a problem, then get this:

http://www.shopping.hp.com/webapp/shopping/compute...

It has a 180W power supply (which is 70 watts more than the Mac mini and has much more impressive specs under the hood at the same price), and then get this:

http://www.newegg.com/Product/Product.aspx?Item=N8...

Its a sleek black monitor with built in speakers and consumes 80W. Adding that with the slim PC I linked (which takes 1/3 cubic foot of space) it takes only 60 watts more than an iMac but its hundreds of dollars cheaper and if any component craps out you can replace it rather than the whole computer.


RE: $1699?
By Pirks on 5/15/2008 1:56:53 PM , Rating: 2
quote:
this does not make the laptops significantly more costly
Exactly! Compare Dell's 17" notebook and Apple's 17" MacBook Pro, you'll find that with similar hardware specs the price for Apple notebook is not significantly higher. Apple charges extra for less weight and thickness, LED backlit screen option, backlit keyboard, other comfort things like that and more durable case (metal instead of plastic). Seems like a fair deal to me. Wanna extra bang - buy Apple, wanna something more basic - buy Dell for somewhat lower price (but not significantly lower if you take the same specs)
quote:
$599 is a rip off no matter how many ways you look at it
That's a rip off only if you look at hardware specs and don't care about ergonomics like most techies here. Ergonomics means size for example. If you don't care about size - then yes, Mac Mini is a rip off. But a lot of people seem to care about ergonomics these days, otherwise we wouldn't see Mac sales grow all the time, and actually faster percentage-wise and money/revenue-wise than any other computer brand.
quote:
however how much simpler is it really?
Not much, but iMac is not that much more expensive either. The deal is the same - you pay Apple a little extra for a little more ergonomics, a bit less space, less wires, etc. Don't wanna pay extra for ergonmics? Care only about hardware power? No problem, pay less and buy any powerful cheapo PC you want, Apple is not the only computer brand, fortunately.

P.S. about crapping out components - heave you ever heard the word "warranty"?


RE: $1699?
By daftrok on 5/16/2008 3:26:05 AM , Rating: 3
First point:
http://www.sonystyle.com/webapp/wcs/stores/servlet...

This is hundreds less and the only difference is that its not LED and its slightly bigger and 1.6 lbs heavier. Granted ergonomics are a plus but you reach a point and say "800 dollars extra just isn't worth losing a pound and a half of weight and save an inch in length and width".

Second point:
The specs that I stated for a more suped up Mac Mini are within the realm of possibility. It isn't being done because there are enough idiots out there that buy it and say "ooh its so small and pretty" that overshadow the people that say "80 GB?! WTF!" Can they make a Mac Mini with 2.1 GHz C2D, 2GB of RAM, 250GB HDD, 8400M GT video card and DVD burner for 500 bucks and still make at least a 200 dollar profit on it? Yes. Will they do it? No.

FINAL POINT:
That All in One rant was really my hate for All in Ones in general and not aimed towards Apple. Yes there is a warranty, but suppose during traveling or picking it out of the box the first time you accidentally drop your iMac. You turn it on and lo and behold a giant crack on the screen. You call up Apple and guess what they say?

"The Plan does not cover:
Damage to the Covered Equipment caused by accident, abuse, neglect, misuse (including faulty installation, repair, or maintenance by anyone other than Apple or an Apple Authorized Service Provider), unauthorized modification, extreme environment (including extreme temperature or humidity), extreme physical or electrical stress or interference, fluctuation or surges of electrical power, lightning, static electricity, fire, acts of God or other external cause"
http://images.apple.com/legal/applecare/docs/Apple...

In other words, you are SOL. Now with a computer, if your monitor breaks and you are no longer under warranty, you replace the screen. With an All in One, if you break your screen and your warranty doesn't cover accidents; the company will happily repair it for hundreds of dollars leaving you computer less for week(s). Warranty or not, All in Ones are illogical.


RE: $1699?
By Pirks on 5/16/2008 5:57:48 PM , Rating: 2
quote:
This is hundreds less and the only difference is that its not LED and its slightly bigger and 1.6 lbs heavier. Granted ergonomics are a plus but you reach a point and say "800 dollars extra just isn't worth losing a pound and a half of weight and save an inch in length and width".
Well, this is why both Macs and Lexuses are too rare, compared to PCs and Chevys, because only a few people can afford that high level of ergonomics.
quote:
It isn't being done because there are enough idiots out there that buy it and say "ooh its so small and pretty" that overshadow the people that say "80 GB?! WTF!" Can they make a Mac Mini with 2.1 GHz C2D, 2GB of RAM, 250GB HDD, 8400M GT video card and DVD burner for 500 bucks and still make at least a 200 dollar profit on it? Yes. Will they do it? No.
Exactly, and you know why? Because noone can compete with them, and noone can compete with them because all the other computer makers use totally different business model than Apple. Nobody develops their own custom software and OS in addition to computer hardware design, and does heavy investment in ergonomics related R&D, all of this _at_the_same_time_! And if there's no real competitor - why get your prices lower? This is simple marketing and economics. Apple has this nice Microsoft-like monopoly on Mac market. Noone else makes Macs, so why lower prices? They just don't care and I'd do exactly the same if I were them.
quote:
With an All in One, if you break your screen and your warranty doesn't cover accidents; the company will happily repair it for hundreds of dollars leaving you computer less for week(s).
I agree, that's a good point, but! Think about complex luxury cars and simple cheapo cars. Everyone knows that luxury car is so stuffed with electronics and sophisticated hardware that a minor bump to it can cause a serious glitch. While something as simple as old Chevy with some rusty retuned 4-banger and lousy seats can withhold A LOT MORE shock and trouble and road bumps than any Lexus (I'm not talking about Lexus AWD SUVs here, these are too ultimate to discuss) it's still true that people continue buying somewhat fragile and overly complex luxury cars that have very expensive replacement parts and stuff like that.

So same is true for monoblocks - you are right that they have negative sides, but what's interesting here is that what you call a negative some other people will call a positive. You may hate complex machinery of a luxury car, because it's easier to break. But there is another guy over there with too much money to spare, he doesn't give a thing about potential problems that could be popping up in future because of sophistication - once he breaks his Lexus in an accident he just buys a new one. And he will NEVER buy your Chevy even though Chevy may be more bump and scratch resistant than his Lexus. Got my analogy?


RE: $1699?
By daftrok on 5/16/2008 6:55:53 PM ,