Dell to buy Alienware in gaming computer expansion

SAN FRANCISCO (Reuters) - Dell said it has agreed to buy gaming-computer maker Alienware, part of a push into the lucrative computer gaming market that could help the No. 1 PC maker boost profit.

Terms of the transaction weren't disclosed. Privately held Alienware, based in Miami, will operate as a separate unit and keep its product development, product marketing, sales and technical support staff as well as its brand, Dell said in a statement.

"This is good news for Dell's consumer market," said Ted Schadler of Forrester Research Inc. "It is kind of re-upping Dell's commitment to that market."

Dell has been expanding in the computer gaming market, launching a supercharged version of its high-end XPS line of computers in January. Gaming PCs can sell for five to 10 times as much as desktop PCs.

Dell is trying to boost profit in its consumer business, which accounts for 15 percent of revenue, after it last year posted slower-than-forecast growth as it lowered prices on entry-level PCs too aggressively.

Chairman Michael Dell, announcing an aggressive push into consumer electronics, in January said about 20 percent of PC users are gamers.

(Additional reporting by Scott Hillis in San Francisco)