Danish toy company Lego, famous for its colorful plastic blocks, is expected to diversify its portfolio of entertainment offerings targeting the metaverse. The company is preparing to partner with game engine company Epic Games to present virtual worlds, expanding its market share and continuing its growth path by entering new digital markets.
Lego Announces Digital Worlds Initiative
According to the Financial Times, Lego is preparing to announce details of its Metaverse initiativebuilt in collaboration with Epic Games, the developer of Fortnite. The move underscores the company’s future actions to establish a presence in the virtual world, targeting users in the digital market.
The company’s strategy is to offer LEGO products in these markets so that users will recognize the brand online and continue to grow. Niels Christiansen, CEO of Lego, spoke about the company’s journey to reach this new goal. Christiansen declared.
We know how to immerse consumers in the world of LEGO in our stores. We work hard to create that feeling of immersion in the LEGO world, even digitally.
LEGOgrew significantly last year, with sales surging 17%compared to 2021, fueled in part by strong sales in Western Europe and the US. Consumer sales also grew 12% during 2022.
Focus on the digital space and metaverse
While other companies, such as Microsoft and Tencent, are gradually shifting resources away from metaverse initiatives, Lego is doubling down on the idea of building digital spaces for children.
Last April, the company, along with Sony, invested $2 billion in Epic Games. The idea was to build a unique metaverse platform to bring children and brands closer together in a safe and secure virtual space designed specifically for children.
In addition to this investment, in Maywe informedthat we aim to triple the number of software engineers to take a physical and digital approach, and we are hiring more to develop internal digital experiences so that we no longer see these as different areas of our business We are doing this.
At the time, Christiansen said of the strength of the digital drive.
We are really building and increasing our capabilities in the digital journey. We are insourcing capabilities that were previously done by consultants.
But the company is also optimistic about the future of retail and is increasing the number of physical stores, opening 155 new stores in 2022.
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