Hewlett-Packard acquired Compaq back in 2002, since then they have kept the name alive, but haven't given it a real marketing push. In recent years the brand has been relegated to overseas markets and sold as a second-tier PC in warehouse style stores. Now HP is looking to revive the brand in the U.S., launching a series of ultracheap computers to meet the needs of consumers tightening their belts amidst a downtrodden economy.

HP is now looking to position the Compaq as not only the label for cheap computers, but also as a brand with mainstream U.S. appeal. On Thursday the company announced the rollout of a line of ultra-inexpensive PCs, including laptops and deskstops.

The first offering is a 15.6-inch laptop featuring AMD Sempron CPU, 2GB of RAM, 160GB hard drive, DVD burner, and discrete graphics. It runs off Windows 7 Home Premium, and is priced at just $399. That's the MSRP, and not one of those get up at 5am and wait in a long line in the hopes you might get one of the 15 in stock at the store kind of deals.

Desktop buyers will find an even better deal, offering the Compaq Presario 4010f with similar specs and a 250GB hard drive starting at $309 after a $100 rebate.

This price point is familiar. Today's popular netbooks, which are essentially shrunk down, ultraportable laptops, are available in the $299 to $399+ price range. With the launch of Compaq's inexpensive full-size laptops, a price war is sure to ensue. What they hope consumers will ask themselves is "Why buy a tiny netbook when I can get a full-size laptop for the same price?" instead of what they ask themselves now "Why spend $300 more when I can get the same stuff on a smaller laptop?"

Both the Compaq laptop and desktop will be available on Windows 7 launch day, October 22. One can't help but wonder the pressure that these will put on more expensive notebooks and desktops to lower their prices. One thing is for sure, Compaq has a winning strategy on their hands and if other brands don't price to compete, they're going to miss out on a lot of potential business, especially during the biggest shopping season of the year.