WORLD NEWS

Lego and Tencent to develop online games in China

Published on: 17th January 2018

Danish toymaker is teaming up with Chinese internet giant Tencent Holdings to jointly develop online games.

The partnership will also potentially see the creation of a social network aimed at Chinese children.

Lego has seen sales growth in the Chinese market of 25-30% in 2016. It is competing with Mattel and Hasbro for a slice of the $31b toys and games market in the region.

Lego said on Monday that the partnership with Tencent, China’s biggest social network and gaming company, aimed to create a safe online environment covering content, platforms, and experiences tailored for Chinese children.

“What we are looking for now with Tencent is just to find more creative ways… (of) reaching children, and creating bespoke content with Tencent, in this case, video games,” Jacob Kragh, head of Lego in China, told Reuters on Monday at joint event with Tencent in Beijing.

The partnership includes developing a Lego video zone for children on the Tencent video platform, as well as developing and operating Lego branded licensed games, the toymaker said.

It also includes Lego Boost — a building and coding set that lets children turn their brick creations into moving objects — and will explore developing a joint social network for children in China.

In November 2016, Lego opened a factory in Jiaxing, China, which it expects to produce 70-80% of all Lego products sold in Asia.

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