
Sega AM Research & Development No. 2, previously known as SEGA-AM2 Co., Ltd., is a video game development team within the Japanese multinational video game developer Sega. Yu Suzuki, who had previously developed arcade games for Sega including Hang-On and Out Run, was the first manager of the department. AM2's first game produced was 1992's Virtua Racing, followed by the highly popular Virtua Fighter and Daytona USA. Through the remainder of the 1990s, they developed more arcade titles and focused on fighting and racing games. AM2 was placed under the management of CSK Research Institute in 2000, and a year later became SEGA-AM2 Co., Ltd. Their development of Shenmue was over budget and cost millions of dollars, and despite positive reviews and good sales was unable to become profitable. Suzuki was promoted and left AM2 in 2003; Hiroshi Kataoka became the head of AM2. A year later Sega was acquired by Sammy Corporation and AM2 was merged back into Sega. Since, the team has continued work on arcade games such as Border Break and the Hatsune Miku: Project DIVA series, as well as smartphone games in Japan. Several games produced by Sega AM2 have influenced and innovated the video game industry from a technical and developmental perspective.
Sega AM2 is a Japanese development team that has been active from 1985 to 2020. You are likely familiar with their name if you have spent time around arcade cabinets or older Sega consoles. The studio released 71 games on PlayPile, though they acted as publisher for only one title while developing the rest. Their catalog spans decades, starting with ten titles in the 1980s before peaking at 34 games in the 1990s. Output dropped to 16 in the 2000s and further declined to eight in the 2010s. Only a single game appeared in the 2020s, indicating a sharp slowdown in recent years. The team focused heavily on arcade hardware with 51 releases on that platform. They also made 15 games for the Sega Saturn, eight for PC, and smaller numbers for platforms like the PlayStation 2, Dreamcast, and Xbox 360. Their primary genres were arcade action, fighting games, and racing simulations. Fighting titles made up 19 of their games, while racing games accounted for 18. They also produced shooters, sports games, and music titles featuring Hatsune Miku. The quality of their work varies across their history. Their average IGDB rating sits at 70.7 out of 100 based on 30 rated titles. Seven of their games are considered great with scores above 80, while 19 fall into the good range between 60 and 79. Four titles received mixed ratings, but none were rated as poor. Their highest-rated works include Shenmue from 1999 at 88.1 and Virtua Fighter 3 from 1996 at 88. These classics came during their peak production years in the 1990s. Later projects showed a shift toward different styles. Yu Suzuki, the original manager who created Hang-On and Out Run, left the team in 2003. After that change, the studio continued making arcade games like Border Break and mobile titles for the Japanese market. Recent releases include Hatsune Miku: Project Diva Mega Mix in 2020, which holds a score of 80.2. While Shenmue was noted for being over budget and failing to become profitable despite positive reviews, many other productions influenced industry standards through technical innovation. The studio now operates as part of Sega following a merger in 2004.















































