From Iron Man's Iron Manual Page 23:

Laser guided munitions were a closely-guarded secret until not too long ago. l shied away from them as they were too pointedly offensive, and l had not seen the need for such directness until the Masters of Silence fiasco. Also, advances in miniaturization allowed for packing a 20 watt laser in an object the size of a lipstick tube. I have shrunk quite a lot of things to the point of invisibility, but some power requirements can't be shrunk. My heat dissipation technology has improved, too.

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