Dell says notebooks driving gaming sales

By Scott Hillis

SAN FRANCISCO (Reuters) - Dell Inc is seeing broad demand for notebooks spill over into the market for high-end gaming computers, saying that gives it an edge over rival Hewlett-Packard Co's stepped-up gaming efforts.

"There's a general trend in the industry that notebooks are becoming more prevalent and we're also seeing that in gaming," said Glen Robson, general manager of marketing for Dell's XPS gaming computer brand.

The single-minded emphasis gamers place on performance has traditionally meant they opt for desktop computers, which deliver more bang for the buck.

But the market is changing as processors from Intel Corp and Advanced Micro Devices Inc, and graphics chips from Nvidia Corp and AMD get smaller and faster, helping notebooks close much of the gap with desktops.

"If you ask any gamer now, they're going to say they want a notebook. A lot of these guys can build their own desktops, but it's very hard to find a good notebook," said Nelson Gonzales, chief of Alienware, a specialty gaming PC maker that Dell bought in 2006.

"We always knew instinctively that if we could come out with a notebook as powerful as a desktop, it would be greatly accepted and would probably overtake our desktops."

Dell does not disclose sales of gaming PCs, but Robson said that offering such products helps the company push the bounds of technology and attract trend-setting buyers who often help others buy computers.

The Round Rock, Texas-based company is confident its gaming business can withstand a fresh effort by rival Hewlett-Packard, which overtook Dell as the top PC seller by overall unit sales, to take the top spot in the gaming market as well.

HP unveiled a new gaming machine on Wednesday called the Blackbird that aims to fill the niche above its general consumer PC line and below the ultra high-end models offered under its Voodoo brand.

"We already have the two foremost brands in PC gaming. Our world is not one of trying to play catchup, it's about staying ahead through innovation," Dell's Robson said. "HP is going to spend considerable resources to catch up with us.