How do you build a brand-new LEGO video game studio? Brick by brick, naturally.
Big guns at the global toy brand have announced they’re moving away from third-party video game development. Leaders of the toy brand, which has long been fundamental to American playrooms and vacuum cleaners, cite rising profits as the key catalyst behind the new endeavor. The company’s sales rose 13% in 2024, with its licensed sets — Harry Potter, Super Mario Bros., Star Wars, among others — to thank. Since 2022, LEGO has tripled its number of software engineers; LEGO’s team comprises nearly 2,000 engineers.
The brand’s rapid growth is due mainly to its popularity in the gaming sector. LEGO’s wildly successful collaborations encompass existing IPs from Fortnite to Indiana Jones, the latter of which welcomed more than 85 million players. LEGO games have been part of console catalogs since the first title came to some Sega consoles in the mid-1990s. However, amid the gear switch, not much has been said about LEGO’s enduring partnerships with existing industry titans like Nintendo. Just yesterday, LEGO launched its Mario Kart-themed set for MAR10 Day, comprising its largest Mario Kart set yet.
LEGO CEO Niels Christiansen says that as kids move away from traditional tinker toys and toward digital mediums, the brand hopes to hybridize digital and physical experiences for the ever-changing preferences of nine- to 12-year-olds. “They tend to grow up a bit earlier and orient themselves towards social media,” he told the Financial Times. He continued, explaining the trend drove the latest LEGO collabs with Nike and Formula One. He promises more to come. “It is so important for us that we are present with exciting experiences and exactly this type of topics and passion points,” he said. “We are seeing a shift and are trying to be right on it and even leading that shift so we stay super relevant.”
LEGO persists amid tumultuous times, especially for toys. The industry slid back 1%, but the Danish manufacturer’s sales skyrocketed 13%. Despite costly investments in new factories, operating profits also rose 10%. Christiansen expressed LEGO isn’t modifying plans for its soon-to-open Virginia factory, even though tariffs could soon complicate the distribution of North American LEGO kits. LEGO imports most kits sold in the U.S. from neighboring Mexico.
Only time will tell whether LEGO’s departure from third-party studios will impact the brand. But the decades-long commercial success of third-party LEGO video games might not be something to play with.
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A lifelong gamer raised on classic titles like Crash Bandicoot, Spyro, and Croc, Stephanie brings her expertise of gaming and pop culture to deliver unique, refreshing views on the world of video games, complete with references to absurd and obscure media.
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