I purchased this system during my daughter's 2nd year of preschool, and had great success with it. This system really appeals to kids by offering games, CDs, books and flash cards to hold the child's interest. It uses word families and then sight words to teach the child to read. My daughter really looked forward to using the games and flash cards every day, and was reading the little books in less than 3 weeks. HOP is great at instilling a sense of accomplishment in the child at every step, which boosts their self-esteem and makes them want to continue learning.
By the time my daughter started Kindergarten, she was a proficient reader. I definitely credit Hooked on Phonics with helping my daughter develop her reading skills. My recommendation: Well worth the investment!