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Case modding is the artistic modification of a computer chassis, often also involving periperal components. Many people, particulary hardware enthusiasts use case mods to illiustate a computers power. The terminology "mod" is short for "modification."
Most computers used to be sold in "beige box" format, which many people found unattractive. So to solve this, people either made their own cases, or started modifing them. Case modification became mainsteam when the Apple iMac was released, which went against the beige box design around at the time. Since then many manufacturers sell pre modded cases to make it easier to have such a case. Beige box computers are now starting to become rare as OEM cases are also designed to be artistic.
Popular modifications include coloured cases, case windows to peek inside, fans with lights, non-standard motherboard colours (most motherboards are dark green), LCD status panels, pictures on the glass, plus case stickers.