Last Friday, the company announced that it was acquiring VooDoo Computers, a Canadian-based manufacturer of high-end PCs that are popular with serious gamers.
On the face of it, the deal is probably a reaction to Dell's (NASDAQ:DELL) acquisition of Alienware Corp. earlier this year. As such, it might simply be viewed as a strategic foray into the gaming industry -- a $1 billion market with higher-than-average margins -- which will allow HP to compete against the likes of Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT).
This was undoubtedly a motivating factor in the acquisition. And with Sony's (NYSE:SNE) continued missteps surrounding the introduction of its PlayStation 3 -- and a resurgent Nintendo making an unexpectedly strong recovery with its Wii console -- it is clear that there is still some room for innovative, new technology in the gaming market.
If HP can integrate the best aspects of VooDoo's technology with its own $3.5 billion R&D lab, it could develop serious new gaming technology that gives it an edge over its rivals.
If you don't believe this is why VooDoo merged with HP, I would simply direct you to a statement in this weekend's New York Times. The paper quoted one of VooDoo's founders as saying "Getting a ticket into HP Labs would be like Charlie getting a ticket to Willy Wonka's chocolate factory."
Beyond the gaming industry, the deal makes even more sense, because more than any other market, it is going to be the gaming industry that drives change in the PC industry -- and not vice versa.
This is because as more and more young people grow up with gaming, they are becoming increasingly comfortable with its enabling technology. This, in turn, is fueling changes in everything from entertainment media to the educational industry.
In the latter case, immersive technologies are providing consumers a more personal and intimate connection with their entertainment "experience;" and in the educational environment, gaming is becoming to be seen by some leaders as a legitimate way to educate people because it engages students -- and their minds -- in ways that the traditional classroom simply doesn't.
The notion of both entertainment and education becoming more immersive might be a little to scary to those of us who are 40 years or older, but my guess is that if you were to try some of the latest gaming technology, you would appreciate how HP's latest VooDoo might just be the trick to keeping its stock on its upward projection.
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Fool contributor Jack Uldrichdoes not practice VooDoo, but if the New York Yankees meet his Minnesota Twins in the ALCS, he might hunt down a Derek Jeter doll and give it a few jabs. He owns stock in Microsoft. The Fool has a strict disclosure policy.
