So far, Microsoft's products have been driven by office efficiency and adult markets and not much respect has been given to children

Torben Ballegaard Sorensen Lego

Under the deal with the US software giant, the Danish toy maker will develop Lego products for Microsoft's proposed Xbox games console, said Mr Sorensen.

In addition, Lego will use Microsoft's Windows Media technology for future products for its Lego Studio, the website that enables children to produce their own films, he said.

Partnership

Mr Sorensen said that this would be an equal partnership.

Lego will make games for the Xbox

The two companies are not merging, Lego is not being swallowed up by the US software giant.

"And we don't intend to buy Microsoft either," he quipped.

Microsoft's previous attempts to enter the children's toy markets have not been successful, Mr Sorensen said.

"So far, Microsoft's products have been driven by office efficiency and adult markets and not much respect has been given to children," he said.

Online links

Lego products will be advertised on Microsoft's MSN - the world's second most popular internet portal with 200 million page views per month, and Lego will advertise MSN on its site.

We chatted about how there are more things to life than just technology - especially to children's lives

Torben Ballegaard Sorensen Lego

The firms said other joint marketing exercises were anticipated in the near future.

Lego products are already sold via both its own website and via the eShop on MSN, and the company has developed into a content provider for Microsoft's MSN Kids channel.

In addition, Lego will use Microsoft technology such as its Passport and Kids Passport into its website to aid online shopping.

"(Microsoft chief) Bill Gates and the owner of Lego, Kjeld Kirk Kristiansen have been meeting for a long time and they have a shared philosophy about how to make a difference for children," Mr Sorensen said.