MELGAR posted:In the 1940s and '50s, trains and railroads were seen and used by a larger percentage of the population than today. Hence the broader interest in model trains - which meant Lionel to most people. Thus, it was more cost-effective to invest in tooling and production of model trains than now. HO is doing better because its base, although a small part of the country's population, is much larger than O gauge and O scale put together.
MELGAR
Melgar, 100% right on! Plus the smaller HO tooling is less expensive. A boarder audience and more return on investment, simple math.