Lego, the Danish toy company famous for its colorful plastic bricks, is hoping to diversify its portfolio of entertainment offerings, targeting the metaverse. The company is preparing to introduce a virtual world in partnership with Epic Games, the game engine company, to continue increasing its market share and growth streak by entering new digital markets.
Lego to introduce the digital world initiative
Lego, the interlocking toy brick company, is preparing to unveil details of a metaverse initiative created in partnership with Epic Games, the company behind Fortnite. according to the Financial Times. The move would clarify the company’s future actions to establish a presence in virtual worlds, targeting users in digital marketplaces.
The company’s strategy is to continue to grow by offering Lego products in these markets, helping users to recognize the brand even online. Niels Christiansen, CEO of Lego, spoke about the path the company is taking to reach this new goal. Christiansen stated:
We know very well how to immerse consumers in the Lego universe in stores. We are working very hard to create that feeling of entering the universe of the Lego brand digitally as well.
Lego grew up significantly in the past year, with revenue up 17% compared to 2021, in part driven by strong sales in Western Europe and the Americas. Consumer sales also increased 12% during 2022.
A focus on digital spaces and the metaverse
While other companies have been slowly shifting their resources away from metaverse initiatives, like Microsoft and Tencent, Lego is doubling down on the idea of building digital spaces for kids.
In April of last year, the company invested $2 billion in Epic Games in partnership with Sony, with the idea of building its own metaverse platform to bring children closer to the brand in safe and secure virtual spaces designed especially for them.
In addition to this investment, the company has been increasing hiring to develop internal digital experiences since May, when informed that it aimed to triple the number of software engineers to adopt a physical and digital approach, and no longer saw them as different areas of its business.
At the time, Christiansen spoke about the strength of the company’s digital push, stating:
On that digital journey, we’re really improving and increasing our capabilities, and we’re adding capabilities that were previously done by consultants… Today, it’s our single largest investment.
However, the company is also optimistic about the future of retail and has also increased the number of physical stores, opening 155 new outlets in 2022.
What do you think about Lego’s metaverse and digital approach? Tell us in the comment section below.
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