Lego enters metaverse with Epic Games partnership

ANKARA, TURKIYE - APRIL 12: In this photo illustration, the logo of Lego is displayed on computer screen and the logo of Epic Games is displayed on the phone screen in front of it, in Ankara, Turkiye on April 12, 2022. Muhammed Yaylali / Anadolu Agency
Lego has set out plans to develop a virtual world with the help of Epic Games so that its products can be accessed in digital form within the metaverse. Photo: Muhammed Yaylali/Anadolu Agency

Lego has teamed up with Fortnite creator Epic Games to enter the metaverse market.

The Danish toy company has set out plans to develop a virtual world with the help of Epic Games so that its products can be accessed in digital form within the metaverse. Users will be able to build Lego sets in virtual environments.

In its annual report Lego said: "We announced a partnership with Epic Games to explore building a fun and safe metaverse for children."

CEO of Lego, Niels Christiansen, said: “We know very well how to immerse consumers into the Lego universe in stores.

"We’re working very hard to create that feeling of getting into the Lego brand universe also digitally.”

Read more: Crypto prices rebound despite Silicon Valley Bank collapse

Tim Sweeney, CEO of Epic Games, said: “We’re thrilled to be partnering with Lego to bring the joy of building and creativity to a wider audience.

“Lego’s timeless brand and commitment to quality align perfectly with Epic’s vision for the metaverse, and we can’t wait to see what we can create together.”

The Lego metaverse will be built using Epic Games’ Unreal Engine, which powers some of the world’s most popular video games.

Lego invested $2bn (£1.7bn) in Epic Games in April 2021, with the objective of developing a metaverse platform that would provide secure and safe digital spaces for children to interact with the brand.

In 2022, Lego saw a surge in sales as consumers purchased larger and more intricate sets, posting a revenue of £7.7bn in 2022, an increase of 17% compared to the previous year.

The company, which is famous for its plastic brick-based toys, has not neglected the digital sector, with a successful range of Lego computer games for PC and consoles.

Read more: FTSE 100 slips at the open as HSBC buys Silicon Valley Bank UK arm for £1

Christiansen credited the company’s recent success to its investments in digital playing experiences.

He told the Financial Times that Lego is “doing a lot of things on the digital side”.

He added that Lego is aiming to create a seamless experience for consumers that incorporates both the physical and digital worlds.

Christiansen said: "Lego bricks are a universal language that transcends generations and cultures and we’re combining the physical and digital worlds to create a new type of play experience that will inspire and engage children and adults alike.”

Watch: The Crypto Mile: Episode 2 A journey through the Metaverse

Download the Yahoo Finance app, available for Apple and Android.