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[Thick Thighs Save Lives]

Lego is building up its capability to make its own video games as the world’s largest toymaker invests heavily in developing its own digital play experiences alongside its bricks and mini-figures.
The Danish toymaker had outsourced its video game studio as well as theme parks and other non-core activities after its brush with bankruptcy two decades ago.

But Niels Christiansen, Lego’s chief executive, told the Financial Times that after a strong period of growth, in which its revenues doubled to $10bn since 2019, it was adding new digital capabilities to its core physical toy business.
“We can definitely say as long as we’re under the Lego brand we can cover experiences for kids of all ages, digital or physical. [Games development in-house] is something we’re building up,” he added.

Lego has enjoyed success with a series of video games developed by external studios, as well as its more recent tie-up with shooting game Fortnite, which has attracted 87mn players. It has invested several hundred millions of dollars in tripling the number of software engineers it employs since 2022 and beefing up its digital infrastructure. The toymaker has also released a number of Lego sets based on video games such as Super Mario and Sonic the Hedgehog.

Christiansen’s comments came as the Billund-based company continued to outpace US-based rivals such as Mattel and Hasbro in both revenues and profitability, growing faster than a toy industry that has been weighed down by existential worries about digital devices stealing children’s play time.

Lego reported on Tuesday that revenues last year increased by 13 per cent to DKr74bn ($10.1bn) while operating profit rose by 10 per cent to DKr18.7bn ($2.7bn).

Mattel’s revenues were flat at $5.4bn in 2024 while operating profit rose by a quarter to $690mn. At Hasbro, revenues fell by almost a fifth to $4.1bn while it rebounded to an operating profit of $690mn.

Christiansen said that Lego would not “overreact” to the threat of tariffs from US President Donald Trump despite importing most of its sets into the US from Mexico.

He said Lego liked to “produce as late as possible” to avoid having excess inventory so would not pre-ship any sets. He added that Lego had got through the Covid-19 pandemic as well as surging inflation and raw material costs “by not overreacting, and it’s the same approach here”.

He added: “Right now, there are no tariffs, but there is uncertainty.” Lego has announced a new factory in Virginia in the US but it will not open until 2027. “It will be good when it comes on stream. We made that decision before tariffs.”
The chief executive concluded: “In the big picture, tariffs are not what keeps me awake. That’s being relevant.”

He stressed that there was increasing competition for children’s time with digital products such as YouTube. Lego has tried new tie-ups such as with Fortnite and Formula 1 in an attempt to attract older children. “We have made quite a few investments in the future — I’d almost rather overinvest. That’s the benefit of being family-owned and long term,” Christiansen added.

Lego over-extended itself at the start of this century by moving into peripheral businesses and moving away from only making its iconic bricks. But Christiansen believes it has learned its lessons and is better able to support more activities as it is a much bigger company. Lego’s founding family also bought back its Legoland theme parks recently as the company increasingly looks at the likes of Disney as a rival rather than toymakers.

Source - Financial Times (link to non-paywalled article here)

 

[BennyBlanco]

They should buy Traveler’s Tales in that case.

 

[Fake]

Lego Horizon sequel?

 

[Complistic]

Lego Island 3?

 

[AJUMP23]

Lego is the most profitable toy company in the world. The Danish really know how to market their building blocks.

I don't think their games have been the greatest as of late, but people seem to be liking them. I thought the Skywalker saga was tough to control, and not very intuitive with what to do. Their last most fun thing was the Forza lego driving. I would like to try to little puzzle game they did.

 

[Furozen]

They should buy Traveler’s Tales in that case.

Warner Bros. would rather close the studio than sell it.

 

[otakuninja2006]

Yeah...........

I already know why, right? Warner Bros.?

Regardless, I wish them luck with their endeavor.

 

[Loomy]

If they can get the visual quality and non jank-ness of Lego Horizon, they'll be set up nicely.

 

[nemiroff]

Lego is the most profitable toy company in the world. The Dutch really know how to market their building blocks.

I don't think their games have been the greatest as of late, but people seem to be liking them. I thought the Skywalker saga was tough to control, and not very intuitive with what to do. Their last most fun thing was the Forza lego driving. I would like to try to little puzzle game they did.

Lego is from Denmark btw

I've enjoyed the "open world" Lego games more than the others. Despite the praise, Skywalker was a disappointment to me and my son (we've played through most of the Lego games coop), it's so...staccato and limited...

 

[AJUMP23]

Lego is from Denmark btw

I've enjoyed the "open world" Lego games more than the others. Despite the praise, Skywalker was a disappointment to me and my son (we've played through most of the Lego games coop), it's so...staccato and limited...

I meant Danish...sorry. I ate a cheese Danish this morning.

 

[Idleyes]

I was gonna say, 'Why fix what’s not broken?' but… LEGO. Their whole thing is building, destroying, and building again.

 

[deriks]

Warner Bros. would rather close the studio than sell it.

Warner shuts down, Lego creates own studio and hires everyone from before. Lego still wins

 

[MSduderino]

Why? To make gaas games? Why announce you are making games in house if you have no details or anything to reveal about it? TT and Epic are doing a fine job for them.

 

[Furozen]

Warner shuts down, Lego creates own studio and hires everyone from before. Lego still wins

They have to be closed first though. And LEGO won't wait.

 

[Sgt.Asher]

Good luck, non-gaming companies going into the business is a lot harder done than said.