Here's a really neat presentation from Mike Kuniavsky on how with 486 level computing power becoming dirt cheap, we will see more and more computing and networking functionality embedded in physical objects.
The metaphor of the 'enchanted object' brings to light what Mike sees as the most appropriate targets for this treatment. I love this term and think its far more appropriate and evocative than the term 'augmented objects'.
Highly recommended.
http://www.orangecone.com/tm_etech_magic_0.3.pdf
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