Lego and Epic Games Team Up to Build Kids-Metaverse
The Danish toy company Lego, known for its colorful plastic bricks, is planning to expand its entertainment portfolio in the metaverse. The company is planning to build a virtual world for kids in partnership with Epic Games, the gaming engine company, to continue increasing its market share and growth streak by entering new digital markets.
Lego Brand Digital World Initiative
According
to the Financial Times, Lego is planning to build the kids-metaverse initiative in
collaboration with Epic Games, the company behind Fortnite. The new initiative
of the company is intended to establish a presence in the virtual world,
targeting users in digital markets.
The new company strategy is to maintain the growth momentum by offering Lego products
in markets to help users recognize the brand even online. Niels Christiansen,
CEO of Lego, spoke about the journey of the company to reach its new target.
Christiansen declared:
"We
know very well how to immerse consumers in the Lego universe in stores. We’re
working very hard to create that feeling of getting into the Lego brand
universe also digitally."
Lego
has grown significantly in the last year, with revenues soaring by 17% compared
to 2021, partly boosted by strong sales in Western Europe and America. Consumer
sales have also increased by 12% during 2022.
Focus on Digital Spaces for Kids in the Metaverse
While
other companies have been diversifying their resources 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 USD 2 billion in Epic Games in
partnership with Sony with the idea of building its metaverse platform for the
brand in safe and secure virtual spaces designed for kids.
The
company has been on a hiring spree to develop in-house digital experiences
since May. It is hoping to triple the number of software engineers in the company to take a
physical and digital approach.
Christiansen
spoke on the strength of the digital push of the company, stating:
"On
that digital journey, we’re upping and increasing our capabilities, and we’re
insourcing capabilities that were done by consultants before... Today, it’s our
single biggest investment."
The
company is also optimistic about the future of retail and has been expanding
its physical store network by opening 155 new outlets in 2022.
What
is your take on Lego’s digital space focus in the metaverse for kids? Please
post your comments.
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