Dell, Inc. (NASDAQ: DELL) is starting to de-emphasize its high-end XPS gaming PCs in favor of the Alienware brand it purchased several years ago, according to reports. This makes sense, as the XPS and Alienware brands seemed to almost compete with one another in many ways.

Gaming PCs, which typically sell for $2,000 or more, carry heavy margins and are very lucrative to Dell and other PC makers. Once some of the current XPS models are moved out of the way, there will be seven Alienware models that a product management group will oversee. Make no mistake: the gaming PC market is huge, worth about $12 billion annually.

This was a planned move, and it's one Dell should have made a few years ago when it acquired Alienware. For far too long it kept its XPS line of high-end PCs for sale, and in a way confused the buyers in this market: what's the difference between XPS and Alienware? Too many models and price points can be just as destructive as too little, but with Dell now in the midst of a corporate turnaround after losing the number-one PC spot to Hewlett-Packard Corp. (NYSE: HPQ) last year, this is a timely, if not overdue, move.

Dell, Inc. (NASDAQ: DELL) is just starting to get a foothold on its turnaround, but until that is in full swing (possibly later this year), the company is at least seeing the increasing demand for laptop computer systems lead to increased demand for high-end gaming computers. These PCs are generally top-end systems that feature the latest in graphics hardware plus the best processors, both of which are needed for the latest in 3D computer games.

Although Dell's XPS high-end desktop product segment (along with its Alienware brand) are both sought after among the gaming crowd, competitors are not standing still either. Larger rival Hewlett-Packard Co. (NYSE: HPQ) has both the Blackbird and Voodoo gaming PC segments and knows that fatter margins are to be had in this niche PC segment as well. With the average desktop computer selling for under $1,000 these days, computer makers are anxious to try and relive a little of older times by selling these high-end desktop systems for more than razor-thin margins. The good news is that they're succeeding, but at the same time laptop systems are cannibalizing traditional desktop PC sales as the normal performance gap between the two segments continues to narrow.

Is the future holding only laptop systems for HP, Dell and others? As the head of Dell's Alienware group puts it, "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." That may be happening soon, and as margins evaporate into thin air on normal desktop systems (and become lower on standard laptop systems too), manufacturers will need to seek out these lucrative niches, and even build new ones that customers don't yet realize they need.

Earlier this year, Dell Inc. (NASDAQ: DELL) acquired Alienware but largely left the company alone. But Alienware's recent alienation of product review journalists may create some public relations backlash towards Alienware, and by proxy, its parent company Dell.

A recent article on Hexus.net, a tech review site, revealed a poorly thought out vision for ensuring good reviews. Apparently Alienware is refusing to provide sample units to journalists who've given less than glowing product reviews. Sure, if a reviewer calls your company bad names you probably won't go out of your way for them next time. In this case, the review wasn't harsh, it was just honest and suggested some alternatives for the high cost of the Alienware machine.

Nobody goes out of their way to help someone who called them a bad name. In Hexus's case, the review wasn't terribly critical. If Alienware is openly trying to manipulate the media for good reviews, the backlash could become staggering. Maybe it's time for Dell to get more involved in raising their new stepchild.

While the Hewlett-Packard (NYSE: HPQ) scandal is a huge distraction – as the company's CEO had to testify before Congress yesterday – the company is still able to do deals. The latest is the purchase of VoodooPC.

Voodoo was founded in 1991 and is a fairly small company (with about 30 employees). The company is a boutique gaming PC manufacturer. Interestingly enough, Dell Inc (NASDAQ: DELL) made a similar acquisition recently; that is, the purchase of Alienware.

With laser-thin margins in the PC world, companies like HP and Dell need to find ways to get premium pricing. And, as gaming surges in popularity, there will certainly be demand for sleek computers. These computers can easily range from $5,000 to even $10,000.

Also, HP will maintain the VoodooPC brand (which, by the way, is a cool name and has lots of brand equity in the gaming world). Over time, we might see some of the coolness filter into mainstream HP PCs.

Interestingly enough, VoodooPC's co-founder, Rahul Sood, wrote about the deal in his blog. Yes, Hurd was definitely involved. According to the latest blog post: "All it took was one email to Mr. Hurd with a short explanation of our strategy and all of the sudden the sea was parted and we had people contacting us. It was clear that Mark Hurd doesn't mess around."

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.