The Lego Group has sent word that LEGO Universe will close down on January 31, 2012. Developers say that the free zone has met with positive player reactions but that not enough free players were converting to paying customers.

As a result of the game's closure, the LEGO Group also said, "As a consequence of the closure, the LEGO Universe staff has today been informed that the ‘Play Well Studios’ in Louisville, Colorado and the game’s marketing function in Billund, Denmark will be closed. This will affect 115 employees. All affected employees will be offered assistance in finding new jobs inside or outside the LEGO Group."