I'm currently using a PC with FX 8320, 2 4GB DDR3 RAM and a HD7770 I intend to replace the HD7770 with the HD7870 and an extra 1TB HDD. My current PSU is the Zalman 500W Do I need to also upgrade my PSU to properly run the PC?
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No, your PSU has enough juice to keep your rig running. But if you plan to upgrade later with a more powerful discrete graphics card, it will be a different story. But you can always get a better PSU then, I suppose.