HP to acquire HyperX from Kingston: Expanding into gaming peripherals to augment its OMEN brand?

HP HyperX Acquisition
HP augmenting its HP OMEN brand? Pic credit: HyperX

Hewlett Packard (HP) has confirmed that it is acquiring gaming peripheral company HyperX. HP will buy HyperX for about $425 Million from Kingston.

Both the companies have jointly released a statement that the former is to acquire the latter’s gaming peripherals portfolio. HP will also get, and quite possibly retain the brand.

HP HyperX deal will undergo standard regulatory review:

Hewlett Packard is about to go through the process of acquiring the HyperX brand from Kingston. HyperX is a popular brand that sells gaming peripherals.

There are HyperX branded DRAM, flash, and SSD products for gamers and enthusiasts as well. However, Kingston will retain the DRAM, flash, and SSD products.

Kingston might remove the HyperX branding from such products, and sell them under its own brand. However, the deal strongly indicates Kingston is on a consolidation drive.

After the deal, which will undergo regulatory review, Kingston might focus primarily on memory and storage markets. In other words, the company could move away from a variable commodity market.

The HyperX peripheral line-up includes gaming headsets, microphones, keyboards, mousepads, mice, power supplies, console accessories, and apparel. Post-acquisition, these should become a part of HP’s broader gaming ecosystem.

While Kingston is moving away from peripherals and the PC gaming market, HP is clearly moving closer. With HyperX’s acquisition, HP clearly intends to boost its presence in the space. Incidentally, HP already has a dedicated HP OMEN brand that caters exclusively to gamers.

Why is HP acquiring HyperX while it still owns the HP OMEN brand?

It seems HP wants to significantly expand potential add-ons for its OMEN series gaming desktops and laptops. The company has been trying to build an entire ecosystem for hardware, software, and services that cater to gamers who are willing to pay a premium.

It is not immediately clear how HP will assimilate the HyperX brand. Moreover, HP is committed to the HP OMEN brand.

It is possible that HP might want to rebrand it as ‘HyperX by HP’. However, the brand’s current owner, Kingston, has tried hard to detach itself.

Kingston has maintained sufficient distance from its sub-brand. Although the company technically owned the brand and made the products, HyperX clearly stood apart from Kingston.

Incidentally, the brand sponsors quite a few popular eSports teams but Kingston maintains a respectable distance with such activities. It is not clear if HP will acquire these sponsorships.

The hardcore and enthusiasts gaming market is big. Experts estimate the global peripherals market (gaming and non-gaming) could grow to $12.4 Billion by 2024.

Speaking about the acquisition, HP claimed that “gaming peripherals will be a disproportionally large element of that year-on-year growth” and that HyperX’s brand recognition will help HP “advance its leadership in personal systems by modernizing compute experiences and expanding into valuable adjacencies”.

Simply put, HP appears interested in HyperX’s market appeal and product positioning. While its own HP OMEN brand could offer products that sport a premium price tag, the soon-to-be acquired brand would have mainstream and aggressively priced products.

It appears the HyperX brand could allow HP to compete with existent players such as Corsair, Logitech, and Razer. HyperX has a respectable fanbase, and its portfolio has a variety of gaming accessories.

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