Based on the weird al song (its all about the Pentiums), the quote "what you got in there a Dorito?"
so when people ask what chip your running your game or video on, the answer could be a potato chip because its so bad.
then league of legends came about and people would have machines that were so slow that the loading screen would display for 10 minutes because one person had a slow pc.
"what you running league on a potato or something?"
"this is taking forever to render, serves me right for encoding on a potato"
"dude how did you get lol installed on a potato?"
A word to be said when desiring to seem random or simply because you're unsure of what to say at a particular time. Technically does refer to the vegetable but the relevant use is not descriptive of anything more than boredom, anxiety or strangeness of character.
With nothing else coming to mind I simply announced 'Potatoe' to at least break the awkward silence.