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What happened with LEGO

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Re: What happened with LEGO

#101
post #98

Profitable companies charge what the market will pay for their products. http://news.ycombinator.com/item?id=5039567

Your link doesn't work for me: > We've limited requests for old items. If you're running a crawler, you can get this data a lot more easily from http://hnsearch.com/api . In any case, http://en.wikipedia.org/wiki/Lego_clone#Legal_challenges

It was a HN link to this: http://37signals.com/svn/posts/3394-how-to-price-something

Re: What happened with LEGO

#102
post #38

I don't have a problem with the price of lego, having — as a child in the 70s — saved my own pocket money to buy lego. The real criticism of lego is that it's gone from being a collection of parts that can make the thing on the cover of the box but also many interesting variations, to something that isn't very malleable. First, lego no longer has a consistent color scheme, so only pieces from one genre go with other…

My beef is that Lego have become so highly branded. I would rather my kid play with generic space and castle and pirate blocks, than with Star Wars and Harry Potter and Pirates of the Carribbean blocks. As a product of the 80's I can say I spent a lot of time playing with highly branded and marketed toys, so it's not necessarily a bad thing; but there's something special about Lego that makes me feel like they should…

Even if they do someday stop using third party brands for sets, it will only be to replace them with their own brands. Take a look at the new Lego sets like Ninjago and Chima. These are as branded as the Star Wars ones, the brands simply happen to belong to lego. They also have toys and TV shows and games attached to them, as well as a whole backstory. This is arguably what they should have done in the first place to not find themselves in a position where they needed someone else's brands. The reality is that it is very difficult to sell an unbranded toy nowadays. Imagine making the same request of other toy companies "I wish they made a generic knight toy", I know these exist because you can find them in non huge toy stores, but it's hard to compete with something that has a comic book, TV show, and movie attached to it. I don't know if its necessarily a bad thing, there are pros and cons.

Re: What happened with LEGO

#103
post #53

Earlier quoted context omitted.

> My beef is that Lego have become so highly branded. The problem was no one bought general Lego blocks. This is still the trend today. I guess not many people remember, but Lego was in deep financial trouble during the 90s and early 2000's. Until they started creating licensed packages and video games based on 3rd party franchises like Star Wars, Lego wasn't selling anything.

As a seven years old, all I wanted (and saved up for) was the biggest, most generic set I could possibly have. I still remember running like crazy to see my mom coming back from the city, carrying LEGO 733 Universal Building Set. Highly branded sets probably push children more into playing roles and sticking to, probably still imaginative enough, scenarios rather than into creative process of building.

I don't disagree. My point still stands though: kids don't urge their parents to buy generic sets.

Re: What happened with LEGO

#104
post #38

Earlier quoted context omitted.

My beef is that Lego have become so highly branded. I would rather my kid play with generic space and castle and pirate blocks, than with Star Wars and Harry Potter and Pirates of the Carribbean blocks. As a product of the 80's I can say I spent a lot of time playing with highly branded and marketed toys, so it's not necessarily a bad thing; but there's something special about Lego that makes me feel like they should…

Even if they do someday stop using third party brands for sets, it will only be to replace them with their own brands. Take a look at the new Lego sets like Ninjago and Chima. These are as branded as the Star Wars ones, the brands simply happen to belong to lego. They also have toys and TV shows and games attached to them, as well as a whole backstory. This is arguably what they should have done in the first place to…

Their in house brands are really well developed product lines. They come with story lines that advance from year to year as the set goes along, and have associated comic books that are sent free to children that request a subscription. Does a great job creating brand loyalty. They also have mini theme parks and play centers set up in many major cities.

Re: What happened with LEGO

#105
post #76

Earlier quoted context omitted.

The reason why Lego makes sets that are branded is because other companies make good-enough lego-compatible blocks that are cheaper than legos. If lego stuck with the "generic sets only", they'd be history by now. Who would bother buying a pack of lego-branded red bricks when you could get the megablocks-branded one that is 90% as good for half the price?

Only the dorky neighbor kid whom everyone hated to play with thought megablocks were an acceptable substitute for Lego.

Yeah, poor people are losers.

Re: What happened with LEGO

#106
post #18

I've always called them Lego. Not Legos. Is that an American thing? (UK citizen here). Just curious.

I am from the midwestern US, and my friends and family all called them "Legos". We would say things like "play with Legos"; the alternative "play with Lego" sounds stilted to my ears. I guess the reasoning is that one block is "a Lego", so multiple blocks must be "Legos".

Re: What happened with LEGO

#108

A little off topic but last weekend I had the privileged of watching an FLL (First Lego League) event. This is a robotics competition for kids ages 9-16. And it's AMAZING. The energy from the kids and parents was exhilarating. Details are here http://firstlegoleague.org/ . There are also a lot of videos from the competitions posted on YouTube (search First Lego League). If you have children I definitely encourage you…

And if you are an adult and want to get involved volunteer! I've volunteered at several levels ranging from helping a local team all the way up to judging at their World Festival and it's probably the best reminder of why I went into engineering. Plus, hearing a student be excited to explain the concepts of torque is just awe inspiring.

Re: What happened with LEGO

#109
post #88

The question should be what happened to the US dollar not lego. Lego is manufactured in Denmark, where they managed to spare themselves from several rounds of quantitative easing. The author could really spare herself all the time and effort and just post a chart of dollar. He/she took it from the wrong end.

How does this explain the trend of legos getting cheaper?

Re: What happened with LEGO

#110

I don't have a problem with the price of lego, having — as a child in the 70s — saved my own pocket money to buy lego. The real criticism of lego is that it's gone from being a collection of parts that can make the thing on the cover of the box but also many interesting variations, to something that isn't very malleable. First, lego no longer has a consistent color scheme, so only pieces from one genre go with other…

This opinion is about 10 years out of date. Lego now forces their designers to mostly use simple pieces and colors; if they want a specialized piece they have to gain support from many other designers and only the most popular pieces are created. Otherwise, the designers have to make do with pieces that mostly would have looked familiar 40 years ago. It's a really refreshing change and I'm happy that it's helped Lego to return to profitability and domination of their market.
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