Lego Mindstorms: What Went Wrong?
latif writes "In recent years, Lego Mindstorms has generated more media buzz for Lego than
all of its other product lines combined, but surprisingly, Mindstorms seem to
be out of favor at Lego. The Mindstorms line has been cut down to a
single set and Lego is not interested in marketing even that set. Lego has been in
a lot of financial trouble in recent times and its neglect of a product line
with solid sales potential might seem odd but this is not so. I have done an
analysis of Lego's Mindstorms options and my analysis indicates that Lego has
solid economic reasons for backing away from the Mindstorms line."
The thing that made legos great was how much they used to enable creativity. Now they've gone the other way, and all the sets prevent you from making your own creation because of wierd specialized pieces.
Go back to the basics. Hell, just go back to Space Police, Blacktron, Castle, and Forest legos. That'd be cool.
Slashdot: Where people pretend to be twice as smart as they really are by behaving like children.
On the plus side, at least they keep on churning out basic tubs.
Condemnant quod non intellegunt.
I love Legos* to death, but they are just too damn expensive. Normal, everyday people just don't like the idea of paying a hundred bucks for a couple of handfuls of plastic blocks, no matter how cool they are.
On the more specific topic of the Mindstorms kit, the author of that article seems to assume everyone who might be interested in Lego would be interested in Mindstorms, which just isn't true. Most people aren't interested in programming their own toys. I know it is difficult for geeks to believe this (and I say this as a professional C++ programmer for the past 10 years), but it is true.
*(yeah, that's right, I called them Legos, suck it down trademark Nazis)
No wonder Lego is in financial trouble--Someone is stealing them all!
Someone made a "battlebot out of lego mindstorms, they didn't get past the qualifying rounds though, some about being smashed to peices?!
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It's an interesting write-up, but I think the conclusions latif's come to aren't warranted. Firstly, all the speculation about Mindstorms price elasticity of demand are based on the assumption that strong consumer interest exists. Lego Mindstorms is competing against (read in the same price range) as Robosapien and the like. These toys are in a premium segment of the market - they're the "big gift" for Christmas and birthdays. Without having seen any sales figures, I'd be surprised if there were strong demand for Mindstorms - the price is just too high. It's anecdotal, but I've only ever seen a few (if any) mindstorm stock items on the shelves in any of the stores I've ever been into. And, they've typically been in electronics stores, not toy shops. That's not typically a characteristic of a high demand item.
To be honest, it looks like someone's just completed an economics course and decided to try applying their knowledge to a real-world problem. I mean, the only point in examining price elasticity of demand in this context would have been if one had already established that Lego was losing money and were interested in determining whether or not Lego could raise prices without sacrificing sales. Same goes for the piece cost analysis. Which doesn't take into account the complexity of unique parts, I might add - Lego can achieve some degree of economies of scale with their common parts (6x2 / 4x2 bricks, helmets, etc). Mindstorms has a large number of parts that are only relevant for the Mindstorms line (such as gears, IR sensors, pulleys, etc). Production costs are likely to be higher, and because they're not piggy-backing on a fad (like Harry Potter or Star Wars), sales are also probably going to be lower.
The assumption that Mindstorms is cannibalising sales is also a stretch, in my opinion. Far more likely that their association with movie brands such as Star Wars and Harry Potter creates substitutable products. Both those brands, as an example, are pitched at the same demographic. And, neither is strictly complementary, from a kid's perspective. Which would you rather - a complete line-up of Star Wars characters, vehicles, and environs, or a blend of HP and SW?
In my opinion, the simpler explanation is that Mindstorms appeals to a very small niche - kids who think with parents who are trying to encourage learning and are willing to spend the time with their kids. Far more likely that they never achieved the scale of sales they were expecting, but because of the sunk costs associated with R&D and brand development, they're unwilling to kill the line entirely. Whether or not that's the economically wise decision depends on their unit revenue and long-run average cost of production.
This is your life, and it's ending one minute at a time.
But let's talk about Mindstorms. I bought one when they first came out. They cost $200. That is a lot of money for a kid's toy (you can buy a Nintendo DS and two games for that). You can only program them with the Lego Mindstorms software which I found annoying and limited (I soon found the free C complier for it on the internet). I don't even think it would work with my Mac that I have today.
What kind of sensors did you get? As I remember you got.. 2 touch sensors. Or was it 3. And two motors. They offered rotational sensors (cost extra), a vision system (costs a TON extra), etc. I just spent $200 on a Lego set (that didn't include enough pieces, if you ask me), I'm NOT going to go buy a $50-$100 camera for it (I don't know what it costs, wasn't available when I bought it).
I think that was the last Lego set I bought. I used to love Lego. But there isn't anything like it today that I know of. Legos aren't the same. I remember building house kits, airplanes kits, a moon base with a monorail, the trains, and all sorts of other stuff. Today they seem to license half their product lines and there is almost nothing "normal" like I remember.
Maybe Megablocks or one of the other "rip-offs" is better. I don't know. I never looked. But Lego priced themselves out of my market. A quick check on Amazon shows the set is still $200. What can I buy for $200 bucks? Let's look at some of the things I've been looking at lately. I can buy a little stirling engine that will run off sunlight or the heat of my had for $140. Or for the same amount, I can buy a Steam Engine kit. A working kit that includes a whistle, governor, and more. Both of those leave me with $60 to spend (a video game, perhaps?).
The older I got, the fewer Lego products I got as gifts for Christmas and such. While there were things I wanted, they just got more expensive. About the only models I remember wanting to build since I was maybe 10 or 12 (I'm currently 22) cost $100-$200.
Between the proliferation of video games, other electronic gadgets, and issues like I mentioned above, I think Lego will be a gonner soon. My parents had a hell of a time finding me an Erector set when I was a kid. I don't know if that has changed, but between that and Lego, what is there for kids to build things with these days?
Comment forecast: Bits of genius surrounded by a sea of mediocrity.
Specialized bricks are what is killing Lego!
There, we may all go on with trying to catch up with all the new stories that just appeared...which are dated several hours ago.
Buy Steampunk Clothing Online!
In a computer class I taught to middle school kids last year, I was the lucky recipient of a grant to outfit the whole class (7 groups worth of kids) with Mindstorms. I spent a semester teaching them not only the basics of Mindstorms, but how to program, how to debug, how to test, and all the other basics for computer programming. They had a blast doing the different projects, and I've never seen these kids so engaged before. Several of them actually wanted to come in after school and work on their robots which is unheard of. This is sad if Lego is cutting back on that and all but phasing it out.
Then there is always the having good software issue...
Two guy I work with have a kids who are involved with other 4th and 5th graders doing a club thing with Mindstorms. One guy had me redo an unused five year old laptop from Win2K (which it came with) down to Win98. This is because he heard the software (even the newer version) works best under Win98. Most of my web searches seemed to confirm this information.
If it doesn't work well under XP, which comes on almost every new PC, you aren't going to get a lot of good "word of mouth" advertising.
After owning a RIS kit for some years now + expansion kits, having gone to the Robotics challenge at LegoLand, and demoing the kit at various school functions, here's my observations about it:
This kit has or had potential to hook kids into robotics, but IMHO they should emphasize extending a "video game" interface into real life peripherals (ie, doing something in a "video game" experience causes something in real life with Mindstorms something like augmented reality). Once kids see augmented reality with Mindstorms, then that can hook them into learning how to do the more complex things, like programming. Furthermore, open up the kit so other companies can extend the kit without threats of lawsuits from Lego.
Ok, this is the third time this month I have heard this statistic, but It's about time we cleared a little of the BullSh*t around this topic.
The US graduates just over 40,000 engineers / ~250 Million individuals. This is about 1 in every 6000 people.
The pacific Rim graduates about 450,000 engineers / 2.7 Billion individuals. This is about 1 in every 6000 people.
The long and the short is that we are about on par as education goes, we are simply outnumbered on this planet at almost 30 : 1
As for lego, Their main malfunction has been pretty much just as TFA described: Bad market analysis coupled with a changing market. Shame on them for not doing their homework and we can all move on.
-=Geoskd
www.geoskd.com
I wish I had a good sig, but all the good ones are copyrighted
Why do we have to turn everything in to a time limited, disposable, keep repurchasing nightmare?
Because companies are in for the long haul.
Let's say they take your advice, and build a Mindstorms lineup with the cool electronics bricks on the cheap. Say, $40 for the RIS with just the electronics and mechanical parts. Maybe a couple of add-on sets for more electronics and mechanical gears. Then say they go back to selling the big boxes of bricks again, like they had when I was a kid. You use these to build the models themselves, and the RIS stuff for the movement and such. Mark it all at a reasonable price so that for $100-150, you can get one fantastic set of Legos that will let you build anything you can imagine, as a kid. Nothing huge, but all the joy of Lego plus the learning experience of the Mindstorms gear. Easily done, and they'd make a killer profit. Everybody would get one.
Then next year rolls around, and they go out of business. Those Lego bricks *last*. My sister's kids will be playing with the same bricks I had 30 years previously. As long as you don't lose them to the evils of the vaccum cleaner, they just freakin' last forever.
Lego just has an unusual business. They're into selling timeless toys, but the problem with timeless toys is that they are actually timeless. They sold the big boxes of bricks 30 years ago and it almost killed the company. It's all down to profit, really. They make more money selling those crappy models with all the custom pieces and selling *less* of them than they did by selling the generic bricks on the cheap at a still substantial profit.
Yes, we all want the big buckets of bricks and we all want the electronic coolness that is the Mindstorms line, but the fact is that selling those is not a way to achieve long term profitability. They're not trying to sell to you right now, they're trying to continue selling to you and your kids, and their kids, forever.
Okay, so that sucks, but it does make sense from their point of view.
One thing not seemingly mentioned anywhere is that Lego seems to have the notion building internally of starting up a different market for the older people into Lego. Us old people who still remember the big buckets of bricks can sign up for their catalog. I got one the other day, and yes, you can buy bricks in bulk. Not random sets, but sets of specific brick types, basically by the bag. It's kinda interesting, actually. For the Lego-philes, I recommend looking around their webpage and signing up for the catalog to see what's what there. Yes, the catalog is full of all the Harry Potter and Spiderman crap, but in the center is a nice foldout where you can just buy pieces in bulk. You could amass one hell of a large lego collection for a decent price by buying one bag of everything they have. Or if you have a specific idea, it would be great for making a large model of whatever type you like.
- Give a man a fire and he's warm for a day, but set him on fire and he's warm for the rest of his life.
Back in the (my) day, Lego just sold boxes full of rectangular blocks, mostly just red and white ones, with some gray flat plates and the occasional clear or triangular roof tiles. I made TWA jetliners, Apollo rockets (they had to be square, since I didn't have enough curved pieces), space ships, tanks, garages, bridges and tunnels for my Hot Wheels, etc.
The sets didn't include step-by-step instructions for making any of these things. AAMOF, I don't remember any instruction sheets at all.
Inspiration came from the pictures on the Lego box and the imaginations of my friends and myself.
Years ago, I looked back at my Legos and realized it was probably the most influential toy of my childhood. Hence, I wanted to pass this glorious experience on to my son. I spent, along with the help of many relatives, literally thousands of dollars on Lego for my boy.
We started with Duplo, then graduated up the Lego ladder. As time passed, the kits became, as others have noted here, very specific to themes, and highly specialized. Sometimes the pieces were so specialized that they would not work well with other kits.
I watched my son assemble these kits, following the supplied instructions exactly. He was very good at it, and he was very happy with the results he got. He also got to be very good at troubleshooting where he put in the wrong piece in Technics sets. This was a Good Thing(TM), I thought.
Then one day, while he was bored, I suggested that take apart some of his Lego and build something new from the pieces. He looked at me like I had three heads. He asked me where he could get instructions for assembling new objects, since he had already assembled all of the variations of the kits' instruction manuals.
I was crestfallen. It confirmed right then and there that Lego Corporate had, over the years, managed to remove all the imagination and excitement of Lego and kids being creative with simple chunks of plastic.
Then Mindstorms came out! I was so excited that I bought a set right away, plus a few (expensive) accessories for it. I gave it to my son, at the time 9 years old, for Christmas. Once he saw that it contained no instructions for specific projects he lost interest quickly.
Some may read my post and judge my son to be an unimaginitive drudge without capacity for creative thought. He isn't that at all. But he has been conditioned by Lego, through Lego products, to treat Lego as a step-by-step construction project, much like a 3D jigsaw puzzle.
Lego might as well print on the box "No Imagination Required!" on all their products.
Let's play Four Horsemen of the Apocalypse. I'll be Pestilence.
There are some great sets that Lego still makes.
The Designer series is top notch and a current favorite of mine. Sure there are some custom pieces here and there but the majority are hinges and cosmetic blocks that can be used in many interesting ways. The models are great too; I've got a T-rex by my monitor at work and a (sadly discontinued) crab sitting on my system at home.
The Technic series is still going strong from the eighties. What's not to like?
The City is like the LegoLand sets of old that you probably remember. There are a few other lines that are in the same vein but those little yellow people don't interest me as much as they did when I was a child.
And the new Factory series are designed by fans. I'm strongly recommending that you check them out.
Lego is a for profit company and will continue to manufacture what sells. Licensed products like Harry Potter, Star Wars, and Dora the Explorer are making them money so they will continue to make them. They have had moderate success with their annoying Bionicle line so it is still being added to. All is not lost yet; Lego is still making some decent and interesting products, so go out and support those.
P.S. You can also get buckets of regular blocks. Think about that the next time you want to buy that Star Destroyer.
That's not the only stupid thing they've done recently. In 2004 they decided to change their 50-odd year core colour palette.
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The light gray and the dark gray changed into a light blueish gray and a dark blueish gray, which were given the derisory name "bley" by the aficionado AFOL community (AFOL=Adult Friends Of Lego).
All new sets since 2004 contain only pieces with the new grays, making it difficult for owners of existing sets to build anything without ending up with a patchwork of different shades of gray in their creations. The brown color was also changed into a more reddish colour.
The official response from the LEGO CEO can be read here: http://f24.parsimony.net/forum61776/messages/9746
As far as I am concerned, I think LEGO is aiming too much towards the market of "grown-up" children who are interested in robots and monsters. The Bionicle sets are cool, but they do not belong in the LEGO construction system. They don't even have studs, they don't interlock with the standard pieces. They sell well, good for them, but they are just one of endless companies to fight in that market.
My feeling is that LEGO could rediscover its roots (and sell) by targeting once again the small children market, with small sets mostly made of standard pieces, as in the famed Legoland series, or the much-loved Classic Space series.
The fact that LEGO is currently showing no sense of direction saddens me to no end.
To conclude with a further tiny bit of information, if you want to find again the old sets that you loved as a child, you might find this site quite interesting: www.bricklink.com
Like many here, I'd say I did the same - used to build any space-ship seen on TV in a somewhat square form. Even out of red house bricks if necessary (grey being rarer than it was before space lego). If you wanted a model, you'd get an Airfix kit instead - but they had far less appeal to me. I don't know how long I'd play with my Lego creations before pulling them apart into something else, but it felt more like drawing, than gluing and painting plastic. Modeling was more about make model, display model - you didn't even play with it after. I think that attracts a different personality type.
.NET Harry Potter edition?
Of course I think one thing that's really hit Lego has been computer games - the feeling I'd get playing the early versions of Sim City or Civ was pretty much the same as I'd get from covering the entire floor area with a Lego city. And like Lego the fun has been driven out of those games as they've got closer to reality in their graphics.
Does the decline of Lego explain the rise of Visual Studio? Just click the components into place and there - you've made a program. Will be have
'Capitalists of the world, unite! Oh