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I'm also in your position; trying to decide whether I should put my hobby money into HO or O scale. Basically, everything that JPM335 said is correct. O scale is much more expensive. For example, let's look at a popular engine, the PRR K4 pacific. In HO, a fully scale version of this loco with all the bells and whistles (literally [;)]) is ~$300 from someplace like BLI. A scale O-gauge verion of this same engine (or most any larger steam engine) is close to $1000. IMO, the O scale engine is more impressive still, but you need to decide if it's worth the 3X investment to get that. In my case, after seeing what current HO is capable of I'm not sure it is. Standardized control and the smaller space requirements (or larger relative layout size) in HO are also attractive to me. If you have lots of space any money though, you could make a very impressive setup with O.
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