The world’s largest toymaker, Lego, has informed the Financial Times that it intends to construct its personal videogames in-house any longer. The firm has closely invested in digital infrastructure in recent times, tripling the variety of software program engineers it employs since 2022, and goals to maneuver away from outsourcing the model to 3rd celebration studios.
Lego chief govt Niels Christiansen, a cheerful man after a powerful interval of development that is seen revenues hit $10 billion, says that doing digital stuff alongside the core bodily toy enterprise is a no brainer.
“We can undoubtedly say so long as we’re below the Lego model we will cowl experiences for teenagers of all ages, digital or bodily. [Games development in-house] is one thing we’re build up.”
Lego has most notably seen success with the assorted titles developed by Travellers’ Tales, the newest being The Skywalker Saga, although different video games corresponding to Lego Dimensions didn’t make a lot of an affect. It’s additionally seen success with main videogame tie-ins to its core enterprise of Lego bricks, together with the Super Mario and Sonic the Hedgehog units.
The model stays undeniably field workplace, nonetheless, and has loved profitable collaborations with the likes of Fortnite, whereas after all at all times trying enviously within the route of Minecraft: The recreation that Lego believes it ought to have made (or acquired earlier than Microsoft did).
Lego continues to outpace conventional rivals Mattel and Hasbro in each revenues and profitability, and is a vibrant gentle within the toy trade which, typically talking, sees itself in an existential battle with videogames for teenagers’ playtime. Its most up-to-date financials had been launched on Tuesday and present income up 13% to DKr74bn ($10.1bn) and working revenue up 10% to DKr18.7bn ($2.7bn).
Christiansen additionally informed the FT Lego wouldn’t “overreact” to President Donald Trump’s tariffs, with the corporate delivery most of its US stock from Mexico, including that the corporate had received via the Covid pandemic “by not overreacting, and it’s the identical method right here.”
When it involves digital, nonetheless, Christiansen goes all-in. “We have made fairly a number of investments sooner or later—I’d virtually reasonably overinvest. That’s the advantage of being family-owned and long run.”
Longtime Lego-watchers could have some slight concern at this: The Danish toymaker veered worryingly near chapter twenty years in the past, which was extensively seen because of over-investing in peripheral pursuits and ignoring the core enterprise of little plastic bricks that actually harm once you step on them. But Christiansen believes the corporate’s present dimension, and the teachings realized from that interval, imply this time will probably be totally different. The actual check, nonetheless, will likely be whether or not it could actually construct a enjoyable recreation.
