The XPS (Xtreme Performance System) name dates back to 1993 when Dell at that time was more focused on corporate business than consumers. Gateway was number one in the high-end consumer market. In early 1993 there was a staff meeting to address how to pursue this emerging market. At this time Dell turned over less than 500 million dollars a year and Michael Dell was involved in most decisions. At this meeting it was decided to launch a new high-end product line to beat Gateway. Vernon Weiss was assigned as product manager to spearhead and manage the new product. In September 1993 the first two versions of the new XPS line were announced. The first generation of the XPS system was available as either a desktop or a tower. This new product line was so far ahead of the competition that it was featured on the cover of the October 1993 issue of PC Computing. For the next 3 years with Vernon Weiss managing the product line, the XPS systems won over 100 magazine reviews and covers, being the first to adopt the latest PC technology available and bring it to the consumers at an attractive price.
From 1997 to 2001, as Dell grew into a large corporation, the XPS line lost its position as the leading-edge performance machines and became essentially just a line for fast computers. In 2005 Dell revamped their XPS line as a direct assault on the market share of companies such as Alienware (now owned by Dell) and Falcon Northwest.
In 2005 Dell separated their home desktop systems into two lines, Dimension and XPS. Their home notebooks were also separated into two lines, Inspiron and XPS. While the XPS designation used to mean the hardware was high-end and well suited for gaming, that is no longer the case. For example, the XPS 200 is limited to extremely low-end video cards, while the XPS M140 is only configurable with Intel video, thus making both systems unsuited for gaming or high-end usage.
Starting 2002, Dell considered buying Alienware, but did not take any action until March 22, 2006, when it agreed to purchase the company. The new subsidiary maintained its autonomy in terms of design and marketing. However, Alienware's access to Dell's supply chain, purchasing power, and economies of scale would lower its operating costs. Initially, Dell maintained the XPS line, often selling computers with the same specifications as those offered by the Alienware division. Due to corporate restructuring in the spring of 2008, the XPS brand was scaled down and then discontinued. In 2008 the former XPS line became known as "Studio XPS" and Dell advertised it as a performance computer line while Alienware was being advertised for gaming. On June 2, 2009, The M17x was introduced as the First Alienware/Dell branded system.
