Gateway to launch new gaming PC’s

Gateway said the 700X Gaming PC would include the most powerful graphics processor from chip designer Nvidia Corp. NVDA.O and some of the top games from leading publisher Electronic Arts Inc. ERTS.O

Shares in Nvidia, which typically move on major product announcements, rose 8 percent. The 700X will include the GeForce FX 5900 Ultra, Nvidia’s top part and also one of its highest-margin products.

Among the Electronic Arts games to be included free with the PC are top titles like “Battlefield 1942” and “Madden NFL 2004.” Electronic Arts shares rose 2 percent to a record high.

Other top components in the 700X include an Intel Corp. INTC.O Pentium 4 processor at 2.8 gigahertz, 512 megabytes of high-performance memory, a massive 160-gigabyte hard drive and a built-in DVD burner, as well as a 19-inch monitor.

Poway, California-based Gateway and Nvidia said they would sponsor a series of in-store demonstrations of the new machine at Gateway locations around the country between late August and mid-September.

The company said it will also offer a lower-end machine, the 500S, which will use a lesser Nvidia chip, a smaller hard drive, slower RAM and a smaller monitor, with no DVD burner.

Both units are set to be available on Thursday, with the 700X listing for $2,099 and the 500S for $1,149.

Gateway’s move follows a major push by Dell Inc. DELL.O into gaming with the April launch of its Dimension XPS system. The company has been advertising heavily in gaming enthusiast magazines and Web sites and showing off its hardware at industry conventions in an effort to break into the market.

Shares of Electronic Arts were up $1.57, or 1.8 percent, at $88.45 on Nasdaq, after earlier hitting a record high of $88.71. Shares of Nvidia were up $1.19, or 7.2 percent, at $17.81. Shares of Gateway rose a penny to $5.06 on the New York Stock Exchange.

Source: Reuters