Features

SAN FRANCISCO — They’re still not free, but they’re getting closer. 

A holiday price war among personal computer makers has pushed prices down by hundreds of dollars on machines robust enough to handle the latest PC games, video and software. 

EMachines is promoting a system with a 1.7 gigahertz Intel Celeron processor and a 40 gigabyte hard drive for $399, no monitor or CD-burner included. 

Other low-priced models are available from Dell Computer, Gateway and Hewlett-Packard — none of which can risk staying on the sidelines. 

Analysts say the price-slashing is happening because PC sellers projected sales numbers earlier in the year that have yet to come through, so they need to ratchet up sales before year’s end. 

“Certainly, in recent weeks we’re seeing very highly competitive pricing in the market as vendors gear up for the important fourth quarter,” said Charles Smulders, an analyst with Gartner Dataquest. 

Starting in fourth quarter of 2000, PC prices began a steady decline, coinciding with the dot-com downturn and price cuts by Intel for its Pentium and Celeron processors, Smulders said. 

But those price cuts have failed to buoy the sector. PC shipments fell by 4 percent last year from 2000, and shipments were down again 0.4 percent for the first six months of 2002, according to Gartner. 

Now, companies hope the latest round of price chopping will coax open even the tightest wallets. 

“I think it gives people the opportunity to buy a computer who didn’t have the resources before,” said Kimberly Shaw, 25, a grants administrator from Greenbelt, Md. 

After eyeing piecemeal upgrades like CD burners and replacement hard drives on a recent trip to Best Buy, Shaw is now looking to replace her sluggish home computer altogether. 

Her current Pentium III-powered PC can’t keep up with many of her computing chores, Shaw said. 

“It was like an average computer two years ago but now I think it’s kind of archaic,” Shaw said. 

Dell is offering its Dimension 2300 computer system with a 30 gigabyte hard drive, a CD-burner and 1.8 gigahertz Intel Celeron processor for $399, after a couple of rebates. A monitor can be added for less than $200. 

“Part of our goal is to stay in price position with the competition,” said Dwayne Cox, a Dell spokesman. 

As people continue to turn their PCs into multimedia entertainment stations for viewing video footage and listening to music, large hard drives are a key feature. Each gigabyte of hard drive space is enough to store about 30-40 albums of music in the popular MP3 format. 

The 1.7 gigahertz Intel processors included in many of the sub-$500 models provide plenty of computing power for video viewing and editing, game playing, multitasking between applications and plain old Web surfing. 

The fast processors are becoming necessary for home users as multimedia tasks such as video editing and game playing become more sophisticated. New PC games, such as Dreamcatcher Interactive’s “Iron Storm,” recommend at least a 1.0 gigahertz processor. 

Just how much value is behind these deals? Here’s an indicator: Last year Gateway’s PC lineup started at $599 for systems with processors just cresting the 1 gigahertz level. This year, Gateway is selling a 2.0 gigahertz-powered model for $399 (no monitor) after a $100 mail-in rebate. 

HP’s lowest-priced model is slightly more expensive — the Pavilion 503n — 1.7 gigahertz processor with a 40 gigabyte hard drive — sells for $549 without monitor.