Lego Joins Forces With Tencent to Develop Online Games
January 15 2018 - 5:36AM
Dow Jones News
By Dominic Chopping
Lego Group is joining forces with Chinese internet giant Tencent
Holdings Ltd. (0700.HK) to jointly develop online games for
children in China, the latest move by the privately-held Danish
toymaker to increase its focus on digital content.
Lego recently jettisoned its chief executive after just eight
months in the job, appointing a younger leader with technology
experience in a move it hopes will help it compete in an
increasingly digitally-focused environment.
Lego is grappling with slowing sales growth and competition from
smartphone apps and videogames. It is locked in battle with Mattel
Inc. (MAT), not only to be the world's largest toy company by
sales, but to focus on modernizing toys for a digital era in which
children spend more time on tablet computers and smartphones.
The company has launched an app that functions as a mini-social
network, allowing children to share what they build online. It has
also created Lego Boost, which combines computer coding with brick
play, and is focusing on ways to use smartphones to bridge physical
and digital play.
Mattel has also sharpened its focus on technology, naming former
Google executive Margaret Georgiadis as its new CEO last year.
Monday's partnership deal with Tencent will see the companies
jointly develop a Lego video zone on the Tencent platform that will
develop, publish and operate Lego-branded licensed games.
The deal also allows for the publication and operation of the
online operation system for Lego Boost and the companies will
explore the possible development of Lego Life, a social network for
children, in China.
Jacob Kragh, General Manager of Lego China, said "We've seen
more and more Chinese children engage with the world digitally, and
the partnership will bring them safe and imaginative digital Lego
content that also supports their needs of learning, development and
entertainment."
"Through the partnership, the Lego Group and Tencent will
explore further initiatives to ensure digital safety management in
each company, share best practices in child online protection and
drive online literacy promotion."
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
January 15, 2018 05:21 ET (10:21 GMT)
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