Having lost its number one spot to HP, Dell has unveiled a home entertainment bundle and a high end gaming system at the CES in Las Vegas.

Dell makes its consumer move

The Home Media Suite, launching initially in the US, consists of a an XPS PC with an intel Core 2 Duo processor, 2 GB memory and 1 terabyte of storage. It has a 27 inch flat screen monitor and both wireless and powerline networking capabilities.

The move is seen as an attempt to steal some market share from HP, where it is stronger than Dell, which gets 85 per cent of its business from the business sector. It is also clearly designed to coincide with the launch of the new Microsoft operating system, Vista, which is expected to give a major boost to the digital home concept.

Dell also announced the launch of an ultra high end gaming system, the XPS 710 H2C Edition Gaming Desktop. H2C appears to be an attempt to combine the chemical equation for water with the word ceramic and alludes to the combination of water cooling and ceramic thermoelectric cooling techniques to keep the Intel Core Extreme QX6700 pre-overclocked quad core processor from overheating.

The rest of the spec is ultra high end, including dual Nvidia GeForce 8800 GTX graphics cards, 4GB of 667 MHz DDR2 memory and Razer mouse and keyboard. All yours for a reported $5,499.

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