Here are some HN perspectives from 2009 (when Lego announced a large increase in profits (http://news.ycombinator.com/item?id=768093 http://news.ycombinator.com

Here are some HN perspectives from 2009 (when Lego announced a large increase in profits (http://news.ycombinator.com/item?id=768093 http://news.ycombinator.com/item?id=768093). The article is no longer available on Yahoo Finance, but can be found here (http://www.hartfordbusiness.com/news9940.html http://www.hartfordbusiness.com/news9940.html). Branded, themed Lego sets simply sell really well and Lego is responding to the demand with increased capacity and more focus on these markets. Here is a scenario of why it works: Visualize a parent and child walking down the toy aisle at a typical large retailer (e.g. Target, WalMart, ToysRUs, etc.). The shelves are full of dozens of single-focus, low cost, electronic toys that are flashy and are very appealing to kids. A big box of Lego bricks just doesn't provide the same instant gratification as a talking toy with a "demo" button. Although, the long-term value of the box of Lego bricks is clearly much higher, explaining that to a 4 year-old is very difficult as they are concurrently making a strong appeal for, an even cheaper, talking doll. Lego has responded with purchasing shelf space in retailers for branded sets that offer instant gratification while also satisfying the parents need for a more creative toy. Regardless, most of the pieces from the branded sets end of in the "big box" of Legos :).