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Non-Tech : Radica Games (RADA) -- Ignore unavailable to you. Want to Upgrade?

To: chaz who wrote (2613)	2/16/1998 7:53:00 AM
From: Jonathan Bird	Read Replies (2) \| Respond to of 7111

RADAF has said, on this thread, that licensing is not their course due to lower margins. I perhaps have not been here long enough to hear Radaf say they aren't interested in licensing. It does not surprise me to hear that they said that given their market position. I have, however, been here long enough to see Radaf attain a license for Nascar. And I am able to recognize this ODM work for what it is. Poor mans licensing. One party brings the brand recognition to stimulate sales. The other party brings the production and know how. The result is the same for Radica. Low margins. In the end the ONLY difference is the label on the box and the person in charge of selling it. This Nascar thing is going to be an interesting trial balloon for Radica. It's a chance to prove they can do something Tiger hasn't. That being, make a licensed game thats worth much more then the label they put on it. I believe they can do it. Without having played the game, I think this is the most exciting opportunity going forward. A quality licensing deal is not easy work to get. If the person selling you the license wants a flat fee then you have to be big enough to afford it. If they want to be paid by units sold then they only want to license to the big player that they know can get the product out to the masses. Radica, until recently, met neither of the qualifications. Depending on how this Nascar deal plays out don't be surprised if management changes their stated course. Margins aren't everything you know. There is something to be said for gobs extra cash you wouldn't otherwise get a hold of IMO. Jon Bird