Sega AM2, originally known as Sega AM Research & Development No. 2, is a prominent video game development team within Sega, established under the leadership of Yu Suzuki, a key figure in arcade game design. The studio made its mark with the release of Virtua Racing in 1992, followed by groundbreaking titles like Virtua Fighter and Daytona USA, which set new standards in fighting and racing genres. In 2000, AM2 was placed under CSK Research Institute, and a year later, it was officially renamed SEGA-AM2 Co., Ltd. Despite the ambitious Shenmue project facing budgetary challenges, it garnered critical acclaim and showcased the potential of open-world gaming. Key personnel include Yu Suzuki, who pioneered many of the studio's innovations, and Hiroshi Kataoka, who took over after Suzuki's departure in 2003. AM2's influence on the gaming industry is notable, particularly in advancing 3D graphics and gameplay mechanics. The studio specializes in arcade and console games, focusing on genres such as fighting, racing, and action-adventure. Over the years, AM2 has received numerous accolades, solidifying its legacy with awards for titles like Virtua Fighter and Shenmue, and continues to impact the industry with projects like Border Break and the Hatsune Miku: Project DIVA series.