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This sounds awesome.

How does it work exactly? Does the use pluck the strings while the machine turns the knobs?

Theoretically, but Gibson made these and it was a real failure in the market to the point they even destroyed a lot of the stock of guitars they couldn't sell.

It might raise from the dead with a non-traditional guitar design like a headless guitar where the mass of the automatic tuners could be hidden inside the guitar body.

Electronic self-tuning machines are still a thing, its just returned to totally aftermarket. Its just too niche and really mostly useful if you use a lot of alternate tunings in a set and can't bring multiple guitars.

Lots of music shops use them too.

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