The largest toy company, Mattel, creator of Barbies and Hot Wheels toys has purchased Mega Brands. Mega Brands produces a variety of products, most notably building blocks which are compatible with LEGO pieces. Its a direct building blocks competitor for LEGO as many of its products and theme lines are very similar to LEGO such as Mega Bloks Halo Wars & LEGO Star Wars and Mega Bloks Barbie & LEGO Friends.
Hasbro, the third largest toy company has Kre-o as its building block toy brand. With LEGO’s soaring popularity and profit each year, its no doubt that many other companies also want to take a share of the pie. What will this mean for LEGO and will it still be able to continue to differentiate itself from the other clone brands?
Thanks to forum member Hodgeman for the news. Via The Star