Lego Plans In-House Game Development Amid Record Profits

Having reported a 13% increase in revenue to $10.82 billion in 2024, the world’s leading toymaker Lego is now bringing video game development in-house, the Financial Times is reporting.

Historically, Lego outsourced its video game production to external studios. However, with the digital landscape evolving and the increasing importance of interactive experiences, the company is now investing heavily in internal digital capabilities.

CEO Niels Christiansen emphasized the company’s commitment to integrating digital and physical play experiences, stating, “We can definitely say as long as we’re under the Lego brand we can cover experiences for kids of all ages, digital or physical. [Games development in-house] is something we’re building up.”

This transition is underscored by Lego’s substantial investment in its digital infrastructure. Since 2022, the company has tripled its number of software engineers and enhanced its digital platforms to support this new direction.

Lego’s venture into the digital realm has already yielded positive results. The company’s collaboration with the popular online game Fortnite attracted 87 million players, demonstrating the potential of integrating Lego’s brand with digital platforms.

Additionally, Lego has released several video games developed by external studios, such as “Lego Builder’s Journey” and “Lego 2K Drive,” which have been well-received by both critics and players. The move to internal development is expected to provide more creative control and align game content more closely with Lego’s brand values and product lines.

Lego’s financial performancelat last year has been robust. its growth is particularly notable given the challenges faced by competitors. Mattel’s revenues remained flat in 2024, while Hasbro experienced a nearly 20% decline in revenues.

Lego’s success can be attributed to its continuous innovation and ability to attract a diverse customer base. The introduction of new product lines, such as Lego Botanicals, has appealed to a broader audience, including teenage girls and women. Collaborations with popular franchises like Harry Potter, Star Wars, and Formula 1 have also contributed to the company’s growth.