HP (HPQ) Expands Its Gaming Footprint With Latest Products
HP Inc. HPQ recently launched a range of gaming products that include the Omen 35L gaming desktop and components, HyperX QuadCast 2 and HyperX QuadCast 2 S mics, as well as the HyperX Alloy Rise 75 Wireless keyboard.
HP has designed its OMEN 35L gaming desktop with future customization in mind. Gamers who love to build and upgrade their gaming setup will be able to do that with industry-standard components that are compatible with OMEN 35L. The OMEN 35L will also include Xbox Game Pass Ultimate, allowing users to take a one-month membership and play games across PC, phones and tablets.
Alongside the customizable desktop, HP has also launched a USB gaming microphone that also boasts similar customizable features. The QuadCast 2 mic demonstrates 24-bit/96kHz fidelity and QuadCast 2 S captures professional 32-bit/192kHz fidelity.
Meanwhile, the dual-wireless gaming HyperX Alloy Rise 75 Wireless keyboard is built to have a long battery life in backlit mode. The product launch also featured a collaboration between HP and Alphabet's GOOGL Google Play Games.
Gamers will now be able to access several mobile and PC games through this HP-Alphabet collaboration.
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HP Benefits From Its Expanding Portfolio
So far this year, HP has also stormed the gaming market with the launch of products like OMEN Transcend 14 Gaming Laptop PC, OMEN Transcend 32 Gaming Monitor, HyperX Cloud Mini Headsets, HyperX Clutch Tanto Mini Wired Controller and HyperX Pulsefire Haste 2 Mini mouse.
Alongside its gaming products, the company has launched computing devices supporting artificial intelligence as well. HP’s portfolio of AI computers includes HP OmniBook X AI PC, HP EliteBook Ultra AI PC, HP OmniBook Ultra laptop and HP OmniStudio PC.
HPQ is continuously expanding its AI products as the market is growing rapidly. Per a report by Mordor Intelligence, the global AI market is expected to witness a CAGR of 31.22% during 2024-2029. HP also seems to capitalize on the recovering gaming market with its latest launches.
Competitive Pressure in the Gaming Space
The gaming industry is dominated by major players like Logitech LOGI, Razer and Dell’s DELL Alienware. Logitech is intending to tap the high-potential market for accessories by pursuing innovation and expanding its product lines.
Logitech commands the gaming market with innovative offerings like the fastest performing mouse and keyboard switches, wireless mouse with the longest battery and multi-device keyboards, among others, while Dell Alienware is a dominant player in the high-end gaming laptop market.
Sustaining in this competitive gaming accessories market will require HP to pour large investments in research and development of gaming products. However, HPQ is struggling in the PC and printing products due to challenges in the demand environment caused by lowered consumer spending owing to the tough macroeconomic environment and protracted inflationary conditions.
Conclusion
The gaming market is highly competitive, and to sustain and stand out in this environment, HP has to strongly pursue research and development. However, these endeavors might face a slowdown amid HP’s stringent cost-control measures in boosting margins over the long run.
Nevertheless, the growing interest in generative artificial intelligence-enabled PCs might give a fresh boost to HP’s PC demand in the years ahead.
Currently, HP carries a Zacks Rank #4 (Sell). Shares of HP have returned 15.7% year to date, underperforming the Zacks Computer - Micro Computers industry’s growth of 17.7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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