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The engines are similar, but the colors are different.  The 263 also has red lights attached to the front and the exterior tubes/pipes are positioned differently.  The tenders also look similar but the 263 has an additional set of wheels on each truck.  Otherwise they look relatively similar, at first glance.  I personally feel the 260e looks better in the black color scheme with the yellow/cream stripe and red wheels.  Many people like the traditional 263 "baby-blue comet" color scheme.  

historically there were three Lionel locomotives with nearly identical bodies produced in the 30's.  the 260e ran from 1930 to 1935 and was replaced by the 263e manufactured from 1936 to 1939.  the 255e was a transition model with some features of both the 260 and 263 and was only available in gunmetal gray from 1935 to 1936.

 

the 263 piping (sand and steam domes) made a bit more sense than the 260 or 255, though basically they were all fantasy designs.

 

MTH does not seem to be following the original Lionel practice of red wheels for locomotives with copper or brass trim while locomotives with nickel trim were produced with black wheels.

 

cheers...gary

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