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Gibson to Embed Guitars with Ethernet
caseyuw writes "Gibson is planning to roll out their Magic this year with the delivery of guitars using Cat 5 instead of analog cables to connect instruments and amplifiers. The debate over the quality of digital vs analog signal processing is not new, but using a 'Magic' Les Paul would force you entirely into the digital domain." We mentioned this last year, but the above article has much more information.
Given that cat5 signals travel somewhere in the region of 0.6C (I don't know the exact figure), I don't think you'll have to worry about latency until the musicians start playing from the next town.