You mean microchips are REAL?!

My son asked me today what is inside his watch. I said, well little microchips and stuff just like inside a computer. He said, you mean ... like in our Puterbug adventures? I said yes, exactly like those. He said, in astonishment - so .... microchips are REAL?!?! What shape are they?! I guess we will have to take apart an old digital watch to show him! It was really cute to see how the children grasp the terminology and start to apply it to digital things all around them.