Lego's Smart Bricks Feel a Little Dumb

Play experts were dismayed this week when The Lego Group launched Smart Bricks — blocks that play sound, light up and react to movement — at the Consumer Electronics Show (CES). Their worry: Kids won’t use their imaginations. But the real risk is that Lego misses an opportunity to teach children robotics.

Let’s first address the question of imagination and play, which links to Lego’s trajectory as a business. The company was founded in Denmark in 1932 as a manufacturer of wooden toys, its name derived from the Danish phrase “leg godt” or “play well.” Its interconnecting plastic blocks successfully drove sales until the early 2000s, when it faced $800 million in debt and almost went out of business. Lego’s saving grace came from CEO Jorgen Vig Knudstorp, who doubled down on strategic licensing partnerships with franchises like Star Wars and Harry Potter. By 2015, it had overtaken Mattel Inc. to become the world’s largest toy company and its brand partnerships became a profitable moat as copycats proliferated.