During model railroading's early history, standard gauge tinplate locomotives ruled the day. Immensely appealing for all their color and flash, these giant locomotives consumed vast amounts of real estate in their owner's homes. The call went out to pre-war model railroad manufacturers for smaller model trains. Soon thereafter, O Gauge model railroading was born.

First appearing in 1936, the tinplate 263E steam locomotive replaced the O Gauge 260 engine and was decorated in two colors; blue or gray. The blue versions headed up the tinplate O Gauge Blue Comet passenger cars while the gray version originally headed two versions of 800 series freight sets.

Today, the 263E returns to the Lionel Corporation Tinplate lineup in the same traditional configuration found in the original 1936 release. The smooth running Bild-A-Loco motor and mechanical E-Unit bring back memories of the buzz and smells of classic tinplate locomotives.