Game On for HP

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HP's Blackbird 002

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Countering Dell

Blackbird will plug a hole in HP's lineup, against Dell's XPS family, says Tim Bajarin, analyst with Creative Strategies. "Dell found a sweet spot with the XPS and did better than anyone expected them to do with it," he says. "It's in the upper end of the market, but not astronomical like the Alienware or VoodooPC brands that are aimed at the truly hard-core gamers. They don't quite go the same route as the hard-core guys, and they don't spend quite as much, but they do want a PC that's fully loaded. HP didn't have anything to counter Dell in that segment."

The Blackbird's $2,500 starting price is somewhat lower than the price at which Voodoo typically sells its machines, which usually start at $3,500 or more. HP's Sood says the lower price will help HP reach a broader market with the new machine. And the Voodoo name will help HP reap the benefits of the boutique outfit's street cred with hard-core gamers.

"Companies like HP are looking to really segment their business," says Stephen Baker, analyst with the NPD Group. "The whole PC market is really big, but there are these different customers out there who want very different things and different price expectations. It's just like in the car market, where one company, GM, sells both the Hummer and Saturn brands."

Due for More Voodoo?

The risk to HP, he says, is widening the availability of the VoodooPC brand so much that it comes too close to the mainstream and loses its status as an elite brand. "I'd expect HP to turn the spigot on a little, but not too much. This isn't about gaining market share, but about selling on the cutting edge."

Meanwhile, rumors of yet another Voodoo-ized HP machine are making the rounds. Gadget-enthusiast blogs have been posting pictures and rumors about another machine bearing the name Virtus. When asked, both Sood and Phil McKinney, head of HP's personal systems group, declined to comment, saying they don't comment on unannounced products.

A multibrand strategy is coming too from Acer, which last week acquired Gateway (GTW) and, in the process, European brand Packard Bell (BusinessWeek.com, 8/28/07). Acer will be selling PCs under its own brand, plus those of Gateway, eMachines, Packard Bell, and high-end notebook marque Ferrari, used under license.

Hesseldahl is a reporter for BusinessWeek.com.