Advances in chip density led to programmable calculators like the HP-65, creating the first consumer market for logic chips. This unleashed creative forces among users and led to the rise of "hacker culture" and user groups, showing computing was becoming mainstream. Gordon Moore noted transistors on chips doubled every year, enabling the 1971 microprocessor. Hobbyists played a key role developing systems using microprocessors, inspiring innovations like floppy disks and BASIC to fit in small memory. This era brought software to the forefront over hardware as the driving force of computing.