Lego is forming an internal team for video game development.
Years after outsourcing video game development due to financial issues, Lego is establishing an internal game division amid a significant rise in its revenue.
Lego has been present in the video game industry for many years, offering both licensed titles featuring digital versions of iconic movie characters and new physical collections, such as the recent Mario Kart set. After decades of collaborating with external studios to develop games under its name, the company has decided to take a more direct approach in this field.
Niels Christiansen, CEO of Lego, stated that under the Lego brand, they can provide experiences to children of all ages, whether digital or physical. In this regard, the company is establishing an internal video game development division. According to industry experts, Lego has invested hundreds of millions of dollars to triple its software developer workforce, raising it to over 1,800 employees. Christiansen mentioned that they prefer to make substantial investments in the future, noting that this is one of the advantages of being a family-owned company with a long-term vision.
Although it is unclear whether Lego plans to cease its collaboration with external developers, this decision could be risky, considering the accumulated value of Lego games created by third parties over the past two decades, with titles such as Lego Indiana Jones: The Original Adventures and Lego Star Wars: The Skywalker Saga. Additionally, there have been successful unlicensed games, such as Lego 2K Drive. On the other hand, Lego Fortnite, driven by the popularity of the main game, has attracted 87 million players.
Developing video games is not an easy task, and the Lego games team will need to find the right balance between entertaining gameplay and the brand's characteristic humor. However, the company is now in a financial position that allows it to attempt this new approach. In the past, Lego outsourced the development of video games and its theme parks while facing a financial crisis, but its core toy business has seen a remarkable recovery.
In a recent report, Lego announced that its revenues grew by 13 percent in 2024, reaching DKK 74.3 billion ($10.9 billion), nearly double what it generated five years ago, and that its operating profit increased by 10 percent, reaching DKK 18.7 billion ($2.7 billion). Along with strengthening its games division, the company has reacquired its Legoland theme parks in an effort to diversify its operations beyond its physical brick business.
