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In this tutorial on using PowerShell's replace method and operator, the presenter demonstrates string manipulation with PowerShell 7, applicable to Windows PowerShell as well. The example starts with a basic string, "hello, world," which is assigned to a variable. The replace method is used to change "hello" to "hi" by using the syntax `.replace("hello", "hi")`, resulting in "hi, world." Notably, the tutorial points out that it's unnecessary to store the string in a variable; the replace method can be called directly on the string itself. This provides flexibility in modifying strings without extra assignments.