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Non-Tech : Radica Games (RADA)

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To: mod who wrote (2179)	1/25/1998 2:09:00 PM
From: j rector	Read Replies (2) of 7111

Dennis, Great questions. I don't know what would constitute market penetration/saturation in hand-held fishing games. RADAF obviously has the capacity to produce 10MM Bass Fishing Games next year. Right now it also looks like the demand exists to outstrip 97 sales. I wonder what would be market saturation #'s. Does anybody know how many fishermen there are in the US & Canada? Just taking a wild guess I would say that the total market for the games is about 25MM. Assuming that they sold about 3MM last year, they still have a ways to go before the market is saturated--perhaps 2-3 years. Obviously for longer-term sustained growth they'll need other products to catch on strong. I would guess that the market for each of bowling, mountain biking, and NASCAR is probably comparable to the fishing market. All they need is one of these three to hit and they're looking at sustaining the revenue growth for 3 years instead of 2. If 2 hit, even merrier. I'm sure they've tested consumer response with these products. I also think that the addition of new factory space is due to the reception received by these new products. If they were only expecting Bass to grow, I don't think they would have built more manufacturing space. Just my take. j.

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