Voodoo, Alienware Face Off

Computer gaming kiddies armed with their parents’ American Express cards gobbled up Alienware’s aggressive designs over the last decade, turning the upstart into a formidable force in the computer industry — enough of a competitor that Dell scooped it up two years ago in a deal of undisclosed size.

That was a smart decision for Dell. Dell largely serves the corporate computer market, and its designs don’t appeal to any niches outside of corporate IT departments. Alienware, on the other hand, has captivated gamers with deep pockets, who don’t want the regular grey box setups that plague American homes and businesses.

Alienware has some problems, however. It’s known for manufacturing errors and shoddy customer service. A friend of mine, James (who is the IDEAL Alienware customer, I might add), has ordered two Alienware desktops, and has had problems both times. The second computer had the wrong part (perhaps it was a graphics card, or an incorrect memory configuration/size). When he called in to complain, Alienware told him he could pay his own way to send the machine in and pay for an upgrade, even though Alienware was responsible for messing up his machine’s configuration in the first place!  His experience is not alone; a survey of computer forums shows widespread discontent with Alienware’s customer service.

Alienware also has an image problem.  Real gamers won’t buy their machines.  Gamers like to tout their technical abilities; this includes building their own computers from generic parts, often on the cheap. Alienware computers don’t give you the pride of building your own computer, and they also cost significantly more.  It’s often been said that Dell’s XPS line of performance computers outperform Alienware, and at a much lower price. None of these revelations bode well for Alienware in the long term. Their ideal customer is rich, and new to gaming. Once initiated into the gaming community, one might be ostracized for ownng an Alienware and not having built their own for less.

Alienware does have pretty solid, differentiated designs. But their designs haven’t evolved enough to validate their additional cost.

Enter Voodoo.

They’re in the same market segment as Alienware, but they’re doing things differently: they’re doing everything right.

Their designs are evolving - not stagnating. Check out the design of their new desktop, the Omen:

It’s understated, modern, sharp, functional, and different.  It positions the internal components 90 degrees off, allowing physics (heat rises, people!) to cool the internals and improve performance without resorting to loud internal fans.

Another innovative product they have is the Envy 133 notebook.  It’s super-thin, and is the only notebook that really challenges Apple’s innovative design.

The trackpad is flush with the palmrest. Its power brick doubles as a WiFi hotspot.  How many laptops can claim that?

With regard to customer relations, Voodoo also has it down.  Their founder blogs to the gaming community, and Voodoo itself has a pretty legitimate blog that leaks photos and specs of their exciting new products.  It’s one of the few corporate blogs that people actually read, because the blog isn’t just products, it also chronicles the steps the company takes to stay in touch with the gaming community.  Voodoo sends teams armed with prizes and demos to gaming conventions, and they really keep consumers content (and happily engaged with new Voodoo products).

Voodoo’s management really has its head on straight, and stands as a beacon of hope for executive managers and entrepreneurs alike, no matter the industry.

Wednesday, June 25th, 2008 Business, Must. Have., Technology

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