Lionel Corporation
In the United States, manufacturers such as the Ives Manufacturing Company, American Flyer, and Lionel Corporation used O gauge for their budget line, marketing either Gauge 1 or 'Wide gauge' (also known as 'standard gauge') as their premium trains. One of the Lionel Corporation's most popular trains, the 203 Armoured Locomotive, was O gauge and ran on tracks with rails spaced 1.25 inches apart. The Great Depression wiped out demand for the expensive larger trains, and by 1932, O gauge was the standard, almost by default.