Whenever there is a merger like this, many of us get interested in the back story. I was able to speak to executives from both firms and an interesting story emerged on why they want to do this.
For HP: Margin, Leadership, Advocacy, and Image
The performance gaming market is unique, while the regular PC market is largely commoditized now with razor thin margins. The performance side enjoys much stronger margins more in line with where the industry was 5 or more years ago. This is largely because the vendors in this industry tend to be closer to their customers and these customers value the extra care and unique offerings to a degree that they are willing to pay more for them.
