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So if the first update costs 4 components, the second is
8,12,16,20,24...
And since common and uncommon components are dirt cheap and by mid game you are drowning in them, you can easily do 10-15 upgrades on your favorite pants.... if you want to.
I normaly stop after 5 or 6.
Which I think is the idea behind this design. It stops you from playing with the same gear the whole game. Forces you to try something new every now and then.
Certain mods can only be slotted into the higher tier gear. And some of the best mods, ones that give Immunity to burn (protection from the overheat quickhacks) are only available in legendary type.
Plus. You can only get max mod slots (far as I know) for legendary items.
(Even tho now, 'max mod slots' is a lot less that it used to be)
I personally didn't upgrade any, even though I am fully specced into Tech and have a ridiculous amounts of resources. I just wore whichever was higher rarity and had more mod slots, until I received iconic or legendary clothes.
Upgrading only increases the item's level and only up to your current level, while increasing the resource cost tremendously. Common and Uncommon materials are easy to obtain, but epic and legendary are hard to obtain without buying them.
So upgrading is only good for iconic equipment by first crafting them into higher rarities (which will automatically upgrade them up to your level) and then you can upgrade them reach max level 50.
This is why I intentionally did not craft higher rarities until I was a certain level ( Rare 25 - Epic 35 - Legendary 45) in order to avoid the hefty upgrade costs. Worked out great in the end, as all iconics I have are max level legendaries.
You can still change how it looks like at your apartments section.
In combination with the upgraded Techy skilltree you may get some bonus Armor on each clothing you wear.