Lego, the biggest toy manufacturer globally, revealed its plans to develop video games internally from now on. This shift comes after a significant investment in digital capabilities, tripling its software engineer workforce since 2022 and intends to phase out reliance on external studios.

Lego’s CEO, Niels Christiansen, expressed optimism following a robust growth period where revenues reached $10 billion, declaring that merging the digital realm with their traditional toy line is a natural next step.

“We can surely affirm that as long as we operate under the Lego brand, we can create experiences for kids of various ages, both digital and physical. Developing games in-house is a direction we are actively pursuing,” stated Christiansen.

The company has achieved notable success with titles from Travellers’ Tales, including the latest addition, The Skywalker Saga, despite other projects like Lego Dimensions not performing as expected. Lego’s collaborations, most notably with franchises like Fortnite, highlight its branding power, even expressing envy over the success of Minecraft, which they feel they should have created.

With a financial report indicating a 13% increase in revenue to DKr74 billion ($10.1 billion) and a 10% rise in operating profit to DKr18.7 billion ($2.7 billion), Lego remains a strong contender in the toy industry, often considered to be in competition with video games for children’s attention.

Christiansen assured the FT that Lego would not overreact to U.S. tariffs under President Trump, given their inventory is mainly sourced from Mexico. The overall strategy is to invest heavily in future endeavors, as he mentioned:

“We have made several investments already; I would almost prefer to overinvest. That benefit comes from being family-owned and having a long-term vision.”

However, observers remain cautious, recalling a time when Lego faced potential bankruptcy due to overextending beyond its core business. Christiansen believes that lessons learned will ensure that their current strategy does not repeat past mistakes. The real test will be creating engaging games that resonate with their audience.