Regariding Lionel and MTH doing the "same" engine... This is just an opinion from someone that has been around O gauge/scale 3 rail (off and on) since the early 90's...
MTH (Mike) never has been timid. He takes chances. Sometimes those chances pay off big, other times, not so. He has no qualms whatsover taking on Lionel toe-to-toe. In fact, at times it's as if he enjoys the challenge. The term "scrapper" comes to mind. Love him or hate him, I have to admire his "Lionel who?" attitude. Both Lionel and MTH feels there's money to be made in S scale now. Time will prove them right or wrong. IF either is going to emerge dominant in the field of S, then at the onset, ONE of them will have to show themselves to be a mover and shaker in the field of S... quickly. It will never be easier than now for one or the other to get the upper hand. Frankly, MTH has purchased a goldmine with the SHS line: He has product that is already well thought out and looks and performs superbly, PLUS, he already has an operating track system, S Trax, courtesy of SHS. To do contempory S scale (contempory as opposed to the AF line) Lionel is having to develop from the ground up on all fronts, and as can be seen with the recent U-Boat offering, has much room for improvement. Ditto their steam engine line: At this point there are no factory options for the scale side of S with Lionel's steam engines. Me thinks that Mikey is going to try to get the jump on Lionel and get into the thick of things quickly. IF he has already secured a licensing deal with Norfolk Southern for their spendid Heritage Series SD's... well... he's already gotten a form of "jump" on Lionel. Lionel will likely go with UP's somewhat lackluster "Heritage" series to counter? Interesting times are ahead. Fasten your seat belts. Note: All of the above from the FWIW Dept. Andre Ming
