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Lego is forming a partnership with Tencent in China pivot

Lego and Chinese tech giant Tencent have formed a partnership to develop licensed games, videos, and other content for Chinese children. The first releases from the partnership are expected later this year, and the Financial Times reports that one of those initiatives will likely be an online game.

The partnership will include the creation of a dedicated area for kids to watch Lego videos on Tencent’s platform, as well as the development of Lego-branded games. The Danish toymaker will also publish and operate Lego Boost, a simple, programmable, and connected robotics kit released in June last year. The two companies will explore co-developing a Chinese version of the social networking platform Lego Life, which is already available in other countries.

Lego has recently struggled, posting its first revenue drop in a decade in September and cutting 1,400 jobs as sales dipped in the US and Europe. Lego has eyed the Chinese market for years and previously said the country offers a “unique opportunity for growth.” It opened the world’s largest Lego store in Shanghai in May 2016 and has seen strong growth in the country. This partnership seems to be designed to help Lego’s growth continue by tapping into the digital space.

“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,” Jacob Kragh, the general manager of Lego in China, said in a statement.

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