Lego, the Danish toy company famous for its colorful plastic bricks, is preparing to present a new virtual world initiative in partnership with Epic Games, the gaming engine company behind Fortnite. The move signals Lego’s commitment to diversifying its entertainment offerings portfolio, targeting the metaverse and digital markets.
The metaverse is a virtual space where users can interact with a computer-generated environment, other users, and objects. The concept has gained popularity in recent years, and companies such as Facebook and Microsoft have been investing heavily in building metaverse platforms. Lego’s move follows a $2 billion investment it made in Epic Games in partnership with Sony in April last year, 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.
Lego’s CEO, Niels Christiansen, stated that the company aims to create the same immersive experience for its consumers digitally as it does in stores. Christiansen explained that the company is upping its capabilities to offer Lego products in digital markets, ensuring that users recognize the brand even online.
Lego’s push into the metaverse and digital markets is strategic as revenues have soared by 17% compared to 2021. 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.
While other companies like Microsoft and Tencent have been slowing down on their metaverse initiatives, Lego is doubling down on the idea of constructing digital spaces for kids. The company’s move is driven by the belief that metaverse initiatives will remain relevant for years to come, with a strong focus on creating a safe and secure virtual space for its consumers.
The company has also been ramping up hiring to develop in-house digital experiences since May, when it announced its intention to triple the number of software engineers to take a physical and digital approach. Lego no longer views physical and digital areas of its business as separate, and the company’s single biggest investment today is in digital capabilities.
Lego’s digital push is a continuation of its growth streak, with revenues surging due to strong sales in Western Europe and America. The company aims to establish a presence in virtual worlds, targeting users in digital markets. The metaverse initiative built in partnership with Epic Games is set to clarify Lego’s future actions toward achieving this goal.
