In this position paper, we will present and discuss our understanding of artifact ecologies as we have developed it, rooted in activity theoretical HCI and dialectical thinking . Our basis is in the Human-Artifact Model, as well as well as cases where we have worked with artifact ecologies in analysis and design of computer mediated activity. The paper concludes with a positioning of our perspective vis-a-vis the notions of natural and blended interaction and the physical-digital divide