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Plastic uptick: Lego's sales have stacked in recent years

Plastic uptick: Lego's sales have stacked in recent years

Through brick and thin

Even with Lego’s modern legacy of movies, games, and theme parks, most of us think of Lego in its purest form: bright plastic bricks that can be built into whatever shape your creativity takes, from cars, to condos, to the Colosseum.

Despite the playful design and imaginative spirit that Lego is known for today, its roots actually trace back to the Great Depression. Ole Kirk Christiansen, a carpenter from Billund, Denmark, noticed that the demand for home construction and furniture was waning. To sustain his livelihood, Ole Kirk pivoted to making wooden toys in the early 1930s, which he initially traded for food for him and his family. Two years later, he christened his venture Lego, a name derived from the Danish phrase "leg godt", meaning "play well".

Plastic uptick

Lego's foray into plastic — the precursor to Lego we know today, dubbed by Christiansen as ‘automated binding bricks’ —  didn’t start until 1947, when the material was still novel. However, sales stacked quickly, with plastic toys accounting for half of Lego's production by 1951. A devastating warehouse fire, which consumed the wooden toy inventory, forced the family to fully embrace their plastic future — a transition that marked the beginning of Lego’s meteoric rise. By the mid-1960s, Lego was sold in 40+ countries, and, by the 1990s, the company was one of the world’s largest toy manufacturers.

However, by the early noughties, Lego was struggling. Sales plummeted almost 30% in 2003, pushing the company close to bankruptcy. Seeking a revitalization, Lego appointed its first non-family member CEO, Jørgen Vig Knudstorp, who sold off non-essential parts of the business and went back to basics: halving the number of LEGO pieces produced, cutting jobs, and — perhaps most crucially of all — asking kids what they actually wanted to play with.

AFOLogy

While tracking playtime proved profitable for Lego — as they noticed that, rather than playing for mindless amusement, children enjoyed trying to master a skill with degrees of difficulty — more mature brick enthusiasts have also played a part in Lego’s present-day prosperity.

Indeed, Lego has an enormous legion of AFOLs (Adult Fans Of Lego). Whether driven by nostalgia, the need for stress relief, or just wanting to show people a self-completed 7,541-pieceMillenium Falcon, more adults are discovering, or rediscovering, the joy of Lego. In turn, the company has embraced the trend, designing retro-themed builds (like the $270 Pac-Man set released earlier this year) that tap into adults’ sentimental seeking of childhood favorites, with many AFOLs interested in the "displayability" of Lego sets, like Lego typewriters, Lego bonsai trees… or even a 9,090-piece Titanic model.

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Electronic Arts launches a platform to put more ads in its games

Video game publishing giant EA launched a new platform on Monday designed to make the process of selling immersive ad space in its popular games easier.

The company says the platform, called EA Advertising, allows brands to “integrate directly into gameplay through dynamic, real-time placements, from stadium signage to custom in-game content.”

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

More so than other studios, EA has incorporated advertising into its most popular titles. As Kotaku points out, the company’s ad efforts stretch as far back as 2006. Several of its sports franchises already feature partnerships with brands like Visa, Lowe’s, Red Bull, and PepsiCo.

In-game advertising hasn’t exactly been embraced by fans, but industry experts expect it to ramp up as companies seek more revenue to offset higher games budgets and surging memory costs. EA rival Take-Two has taken a different approach, with CEO Strauss Zelnick recently saying the company was “not at risk of doing brand partnerships” in the forthcoming “Grand Theft Auto VI,” and that ads in full-price games seems “unfair.”

The $55 billion deal to take EA private, led by Saudi Arabia’s Public Investment Fund, is set to close at the end of this month. Being the largest leveraged buyout in history, EA will likely look for more ways to boost revenue to cover interest payments.

business

JM Smucker says it sold $1 billion worth of Uncrustables in FY2026

After years of booming sandwich sales, JM Smucker has finally earned a billion-dollar crust.

On Tuesday, the company reported results for fiscal year 2026, highlighting better-than-expected profits driven by higher prices for coffee and sweet baked goods. However, at another point on the earnings call, CEO Mark Smucker pointed to one particularly jammy figure: in line with previous forecasts, the company sold $1 billion worth of its (almost always) crustless sandwiches, Uncrustables, in the last year alone.

business

Paramount reportedly offers concessions to resolve multistate antitrust investigation

Paramount has reportedly offered up some concessions in an effort to prevent an antitrust lawsuit by California and about 10 other states, according to Bloomberg reporting on Monday.

Reuters first reported on the potential suit from a group of unnamed states last week, which could throw a wrench in Paramount’s plans to buy rival Warner Bros. Discovery in a Hollywood megamerger.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

The list of concessions is unknown, though Bloomberg previously reported that Paramount is open to divesting some of its kids TV assets to appease EU regulators.

Late last month, reports said US regulators appeared likely to approve the $110 billion merger, following a meeting between Paramount CEO David Ellison and DOJ antitrust staffers.

$98B ⛽

The IATA released its latest financial outlook for the airline industry over the weekend, forecasting a $98 billion jump in the sector’s collective fuel bill. The world’s largest trade group representing airlines expects the oil spike to halve profits by 49% from last year to $23 billion.

The group also expects profit margins to halve year over year, falling from 2025’s 4.2% to 2%. Still, revenue is expected to climb to $1.17 trillion from $1.07 trillion.

A surge in the cost of jet fuel has rocked US and global airlines this year, leading Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, JetBlue, and others to raise fares and ancillary charges like bag fees. Low-cost carriers, which operate on smaller margins, have been squeezed the hardest, resulting in Spirit’s shutdown.

“It’s a tough year for all airlines, especially those whose balance sheets had not yet recovered from COVID. And, of course, for those operating in the Gulf,” said IATA Director General Willie Walsh, who added that demand is holding up and about half of passengers expect to spend more on travel this year. “That bodes well for a strong northern summer peak season. The big unknown is how long travelers and shippers can tolerate the higher costs of connectivity.”

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