Danish toy-maker Lego has teamed with software giant Microsoft in a global marketing alliance, the financial terms of which were not disclosed.

Lego will supply Microsoft’s MSN network with content and develop interactive games for the Xbox, Microsoft’s answer to Sony’s Playstation 2. It will also integrate Windows Media into Studios, the PC camera and editing software developed in partnership with movie-maker Steven Spielberg.

In return, Microsoft will provide MSN ad space for Lego, supply security software for the Danish group’s website, and promote Lego’s wares on its e-commerce service.

The deal could give Lego a much-needed boost in the electronic world. The group has seen increasingly stiff competition from computer games in recent years, and has predicted a DKr500 million ($62.9m) loss for 2000.

News source: Financial Times