Yu Suzuki, who had previously developed arcade games for Sega AM2 including Hang-On and Out Run, was the first manager of the department.
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Several games produced by Sega AM2 have influenced and innovated the video game industry from a technical and developmental perspective.
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At the time Suzuki joined Sega AM2, there was only one development division at the company.
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Sega AM2 was promoted to project leader while still in his first year at the company.
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Sega AM2 worked on development of G-LOC: Air Battle and the R360 arcade cabinet.
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Some time after the release of Power Drift, Sega AM2 began to separate the amusement division into the Amusement Machine Research and Development teams, or AM teams.
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Sega AM2 has stated the reason for this separation was the advent of advanced computer graphics technology.
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Sega AM2 mandated that Daytona USA had to be better than Ridge Racer, a game made by Namco.
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Subsequently, Sega AM2 released Virtua Cop and Virtua Fighter 2 for the Model 2.
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Sega AM2 described the palm tree logo of AM2 as representing reliance and peace of mind.
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Also in 2000, Sega AM2 restructured its arcade and console development teams into nine semi-autonomous studios headed by the company's top designers.
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Sega AM2 has developed games for the Hatsune Miku: Project DIVA series, as well as a number of free-to-play smartphone games in Japan, such as Soul Reverse Zero.
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Sega AM2 became involved with the Hatsune Miku license with items for Virtua Fighter 5 R and the racing game R-Tuned: Ultimate Street Racing.
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Sega AM2 has several arcade and video game series they develop, including Daytona USA, Virtua Fighter, OutRun, Virtua Cop, Virtua Striker, Fighting Vipers, and Shenmue.
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Journalists have praised Sega AM2 as having a "legendary" status in game development, in particular under Yu Suzuki.
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Also in 1995, Next Generation stated that Sega AM2's unusual repeated success came from its ability to release high-quality games on a regular basis.
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