When to update hardware

Ted has an eye for good looking hardware:Ted Leung on the air : Lunchbox multiprocessor

The thought occurred to me though, that I have not upgraded my hardware for a while either. Perhaps this is a trend? I did build myself a box a few months ago, but it was low-tech: the aim was a small, cheap and quiet box. In fact it is a Duron processor, which is fine for Web usage, a bit slow for starting up the word processor.

If I am honest it was the kids games that used to drive most upgrades, so either they are more diligent with school work(!) or advances in games no longer requires increases in hardware power.

Is this "The Innovator's Dilemna" in practice? If PC manufacturers focus on more an more power, will they be beaten by other who focus on other facets? For instance, beautiful design, size, power , noise ......... Perhaps Ted's choice has power and these other factors!