Lego, the Danish toy company famous for its colorful plastic bricks, expects to diversify its entertainment offerings portfolio, targeting the metaverse. The company is preparing to present a virtual world in partnership with Epic Games, the gaming engine company, to continue increasing its market share and growth streak by entering new digital markets.
Lego to Present Digital World Initiative
Lego, the interlocking toy brick company, is preparing to present details of a metaverse initiative built in partnership with Epic Games, the company behind Fortnite, according to the Financial Times. The move would clarify the future actions of the company toward establishing a presence in virtual worlds, targeting users in digital markets.
The company’s strategy is to continue growing by offering Lego products in such markets, helping users recognize the brand even online. Niels Christiansen, CEO of Lego, talked about the journey the company is taking to reach this new target. Christiansen declared:
We know very well how to immerse consumers into the Lego universe in stores. We’re working very hard to create that feeling of getting into the Lego brand universe also digitally.
Lego grew significantly in the last year, with revenues soaring by 17% compared to 2021, in part boosted by the strong sales in Western Europe and America. Consumer sales also rose by 12% during 2022.
A Focus on Digital Spaces and the Metaverse
While other companies have been slowly moving their resources away from metaverse initiatives, like Microsoft and Tencent, Lego is doubling down on the idea of constructing digital spaces for kids.
In April 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 kids closer to the brand in safe and secure virtual spaces designed especially for them.
In addition to this investment, the company has been ramping up hiring to develop in-house digital experiences since May, when it informed that it aimed to triple the number of software engineers in order to take a physical and digital approach, no longer viewing these as different areas of its business.
At the time, Christiansen talked about the strength of the digital push of the company, stating:
On that digital journey we’re really upping and increasing our capabilities, and we’re insourcing capabilities that were done by consultants before … Today, it’s our single biggest investment.
However, the company is also optimistic about the future of retail and has been increasing the number of physical stores as well, opening 155 new outlets in 2022.
What do you think about Lego’s digital and metaverse focus? Tell us in the comments section below.
Source: Crypto News