He he... that's an easy one.
The concept hasn't changed much, but the storage has: a standard microphone will feed the signal to an AD chip (analog to digital converter), then feed it to either battery backed up ram, or eeprom, or one of the newest kinds of ram. A DA chip converts the signal back to be played.
The ram is the limitation here: you've got to find a way to store huge amounts of data (depending on quality, may include some compression), manage it, and hold on to it for whatever amount of time.
I'll post a link if I find one.
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