For decades, Lego has been a prominent player in the video game industry through partnerships with third-party studios. Now, the iconic toy company is shifting its strategy by investing heavily in an internal game development division. This move aims to create immersive experiences for children of all ages, both digitally and physically. Lego's CEO, Niels Christiansen, emphasized the company's commitment to expanding its digital presence while leveraging its strong brand identity. With significant financial backing and a robust team of software developers, Lego is poised to redefine its role in the gaming world. The company’s recent financial success and strategic acquisitions further underscore its ambition to diversify beyond traditional toys.
The decision to bolster in-house capabilities marks a significant shift from Lego's past practices. Historically, the company outsourced game development during challenging financial times but has since rebounded strongly. Lego's investment in tripling its software developer workforce to over 1,800 professionals demonstrates its long-term vision. The company has poured hundreds of millions of dollars into this expansion, reflecting its confidence in the potential of digital entertainment. Christiansen highlighted that being family-owned allows Lego to take bold steps without immediate pressure for returns. This approach contrasts sharply with previous reliance on external developers who have built a solid reputation for Lego-branded games over the years.
Despite the risks associated with transitioning from external partnerships to internal development, Lego remains optimistic. The company recognizes the importance of maintaining the fun gameplay and signature humor that fans have come to expect. Titles like Lego Star Wars: The Skywalker Saga and Lego Indiana Jones: The Original Adventures have set high standards, and Lego aims to meet or exceed these expectations. Moreover, the success of non-licensed games such as Lego 2K Drive and the popularity of Lego Fortnite, which attracted 87 million players, underscores the potential of its digital ventures. Lego's financial performance in 2024, with a 13% revenue increase to DKK 74.3 billion ($10.9 billion), provides a strong foundation for this ambitious endeavor.
In addition to its gaming ambitions, Lego has also made strategic moves to reclaim ownership of its Legoland theme parks. This diversification strategy aligns with the company's broader goal of creating multi-faceted entertainment experiences. By integrating physical and digital elements, Lego seeks to offer a comprehensive and engaging environment for its audience. The company's resurgence in the toy market and its proactive approach to digital innovation signal a promising future. As Lego continues to evolve, it positions itself as a leader in both traditional and modern forms of play, ensuring its relevance in an ever-changing landscape.