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In 2006, Dell acquired the high-end gaming PC brand Alienware to complement its own premium-gaming line of XPS computers. With a market worth around $12 billion, Dell’s investment in the gaming PC market by purchasing Alienware was a logical move. The company allowed Alienware to operate independently, but by doing so it created a problem in that they now had two competing gaming PC lines. Dell has admitted its XPS line has eaten into Alienware’s market share. As a result, the company plans to phase out four gaming XPS models from its lineup, streamlining their offerings and relieving their Alienware subsidiary of competition. Their plan is to essentially create two complementing brands, rather than two competing brands.

The reason why Dell took two years to realize the change was because the company originally thought the Alienware brand was hardcore enough that it would differentiate itself from their “family sedan” XPS line. Apparently, that wasn’t the case. Over time, Dell began to market the XPS as a high-end gaming machine, inadvertently creating competition within itself. In fact, some XPS systems in the past contained the same features and components offered in Alienware rigs.

It should be noted that not all XPS systems will be scraped. In June, Dell will be pushing all gaming-centric PCs to Alienware, while the XPS will morph into a more mainstream brand.

[Update] Dell has since released a statement on their Direct2Dell Blog in response to the phasing out of the XPS line. It turns out that the phasing out of the XPS lineup was a bit of an exaggeration. The XPS line will be continued, however Dell plans to expand their focus on Alienware.

“Dell XPS and Alienware are both great brands…and both will live on,” spokeswoman Anne Camden said in a blog. “But we are going to expand our focus on Alienware. We are going to invest like crazy in product development, design, and engineering to propel Alienware as the premier gaming brand in the future.”

Read [Tech News World] Update Via [CNET]