LEGO Expands In-House Game Development Amid 13% Sales Growth

LEGO is shifting its video game development in-house, establishing its own studio to create a hybrid experience between digital and physical play. The Danish toymaker plans to invest significantly in this area, having already tripled its software engineering team since 2022, as it seeks to engage tweens who are increasingly drawn to online activities and social media. CEO Niels Christiansen noted the importance of partnerships with brands like Nike and Formula One in attracting this demographic. Despite a general decline in the toy market, LEGO's sales rose by 13% to 74.3 billion Danish crowns, aided by successful product lines and digital collaborations, including its tie-in with Fortnite. The company is also expanding its manufacturing capabilities with new factories in Vietnam and Virginia, aiming for sustainable growth while navigating market challenges. LEGO continues to outperform competitors such as Mattel and Hasbro, solidifying its position as the world's largest toymaker.