Lego-Tencent deal to develop safe online games for Chinese children
Date: 2018-01-16   Author: Dhananjay Punekar  Category: #news

The Lego Group, a renowned toy manufacturer based in Denmark, has formed a strategic alliance with Tencent Holdings Limited, one of big shots across the mobile gaming & video streaming sector, to jointly manufacture brand online video games for children in China. The key officials of both the firms have stated that that the alliance is aimed at creating a new social network for Chinese kids. The deal may up Lego’s ante, which may prove beneficial for the company, after experiencing a revenue deficit of nearly 5% in the middle of 2017, owing to which it was forced to cut nearly 1400 posts before 2017.

As per authentic reports, the firm wants to explore the Chinese toy market as it witnessed a decline in sales across Europe and the U.S during the first six months of 2017. Data statistics released by the firm demonstrate that the Lego had witnessed a double-digit growth in the Asian country over the past few years. It is learnt that the collaboration between the two firms is also aimed at manufacturing Lego Boost, a building & coding set of blocks that helps children transform brick creation into some moving object.

Apparently, the two firms are eager to explore the Lego life, a safe social child network, across the Asian subcontinent. Industry analysts have consequently projected the emergence of a fierce competitive scenario across the China toy manufacturing industry. Reports say that that Lego contributes nearly 3% towards Chinese toy manufacturing market share and is succeeded by Hasbro & Mattel that contribute approximately 1% and 2% towards the regional share.

For the record, in November 2016, Lego had set a toy manufacturing unit in the Jiaxing city of China and the unit is projected to manufacture nearly 70% to 80% of all the Lego items to be sold in Asia.



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

Australia to ban Huawei’s participation in 5G mobile telecom rollout
Author: Dhananjay Punekar

In a major blow to China-Australia relations, Australia is planning to exclude Huawei from the list of participants invited for the 5G mobile telecom rollout in the country. Reportedly, the country fears that the Chine...


Siemens pioneers facility to use ammonia for renewable energy storage
Author: Dhananjay Punekar

Siemens AG, a German firm headquartered in Munich, has inaugurated a £1.5 million pilot venture in Oxfordshire, with an aim to promoting the use of ammonia as a new kind of energy storage. Reportedly, the firm wa...


Shell offers engineering contract to Subsea 7 for Penguins Project
Author: Dhananjay Punekar

Royal Dutch Shell PLC, a renowned oil & gas firm, has offered Subsea 7 S.A., a UK based engineering, construction, and services firm, a contract for the redevelopment of its Penguins oil & gas field located in ...