The company is preparing to present a virtual world in partnership with the gaming engine company behind the popular Fortnite game, to increase its market share and growth streak by entering new digital markets. The company’s strategy is to continue growing by offering Lego products in such markets, helping users recognize the brand online as well.
Lego representatives said that, already knowing how to immerse consumers into the Lego universe in stores, they are working very hard to create that feeling of getting into the Lego brand universe also digitally. Lego grew significantly in 2022, with revenues soaring by 17% compared to 2021, in part boosted by the strong sales in Western Europe and America. Consumer sales also rose by 12% during 2022.
While other companies such as Microsoft and Tencent have been slowly moving their resources away from metaverse initiatives, Lego is doubling down on the idea of constructing digital spaces for kids. In April 2022, the company invested USD 2 billion in Epic Games in partnership with Sony, with the idea of building its own metaverse platform to bring kids closer to the brand in safe and secure virtual spaces designed especially for them.
In addition to this investment, the company has been ramping up hiring to develop in-house digital experiences since May the same year, when it informed that it aimed to triple the number of software engineers to take a physical and digital approach, no longer viewing these as different areas of its business.
Nonetheless, the company is also optimistic about the future of retail and has been increasing the number of physical stores as well, opening 155 new outlets in 2022.
While a couple of years ago the idea of a metaverse connecting everything digital in an organic manner seemed farfetched, nowadays it feels like we are almost living in it. The need for a sustainable approach is thus a priority for regulators. In this view, The European Commission has recommended a headstart into analysing the implications of technologies such as the metaverse and ChatGPT at the beginning of March 2023.
Margrethe Vestager, the executive vice president of the European Commission for a Europe fit for the digital age emphasised that the region should adapt and react to new market dynamics in the digital era. During her keynote for the Keystone Conference, she talked about the digital transition and the shift to a digital economy, as well as the risks and opportunities that these shifts might present.
On the other side of the world, Japan-based companies such as Fujitsu and Mitsubishi have announced a partnership aimed at supporting Japan’s Web3 strategy. The companies are teaming up to create the infrastructure for an open metaverse and support the country’s Web3 strategy. Fujitsu revealed that it will work with nine other companies to put together an interoperable metaverse structure called RYUGUKOKU (TBD). This structure will be used to expand the Japan Metaverse Economic Zone.
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