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I'm not sure of the O-scale model train market's size. But compared to consumer goods it has to small, a niche market especially for the number two producer . Add to that the development and production costs of lower volume items like the command system and handhelds and it has to be tough to make a good profit on those items.

Believing that to be true, I think it was a mistake for MTH to come out with their DCS system. Had they chosen to be DCC compatible, they could rebranded control systems and electronics from a myriad of producers in the higher volume HO market. And their loco's would be compatible with many aftermarket electronics making them more serviceable with the ability to upgrade ... more valuable in the long term. Not an issue for the original owner that got out but a huge issue for the remaining "company(s) as more modelers shy away from their products thinking they're a dead end.
 

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MTH is DCC compatible with all their stuff from the last ten years. The sticking point is the big dog in O-gauge is not DCC compatible and won't run with DCC stuff on the tracks. Also, in 2000 when the DCS system came out, if they had instead gone for DCC with 3-rail O-gauge, IMO they would have fell flat on their face! One of the big calling cards for DCS was it would run on the same tracks at the same time with TMCC, that still applies.
All that proprietary system work to run two different mfg.'s models on the same track at the same time. I run conventional. So I wouldn't know how important that is, and, what's the size of that market sub-segment that needs that. I'm say that presuming a simple switch can alternate between the two control systems on a single track (loop). Reinventing the wheel had to cost them and the buyer both in terms of dollars and functionality.

On another note, if the newer models can run DCC, wouldn't there be off-the-shelf (i.e., non MTH) replacement solutions for the control system - handhelds, et. al.? Or is the problem modelers have older non-DCC Loco.'s.
 
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