Editing Sega AM2 (section)

=== Establishment of AM2 and years as a department ===
[[File:Toshihiro Nagoshi 20140125.jpg|alt=An image of Toshihiro Nagoshi|thumb|upright=0.8|[[Toshihiro Nagoshi]] joined Sega as a member of Yu Suzuki's team, and was a designer with AM2.]]
Some time after the release of ''Power Drift'', Sega began to separate the amusement division into the Amusement Machine Research and Development teams, or AM teams. Suzuki was made general manager of Research and Development No. 2, or Sega AM2.{{Sfn|Horowitz|2018|pp=153-157}}<ref name=":1" /> According to Suzuki, Sega employed approximately 600 people in research and development, and that AM2 began as a group of around 100 people. He has also stated the reason for this separation was the advent of advanced computer graphics technology.<ref name=":1" /> Around the time of AM2's formation, Suzuki's team moved back into the main office, then to an annex a short walk from the office. Even so, Suzuki worked with a desire of secrecy, so much so that Sega president [[Hayao Nakayama]] was denied entry on one occasion.{{Sfn|Horowitz|2018|pp=153-157}}

The first project developed by AM2 was ''[[Virtua Racing]]''. While development began with 10 people on ''Virtua Racing'', it finished with 25 workers on the project for a year, and the [[List of Sega arcade system boards|Model 1]] [[arcade system board]] on which it runs took approximately three years. AM2 also ported the game for the [[Sega Genesis]].<ref name=":1" /> [[Next Generation (magazine)|''Next Generation'']] stated that AM2 "single-handedly chang[ed] the perception of polygons in a gaming environment" with ''Virtua Racing''.<ref name=":13">{{cite magazine|date=April 1995|title=AM2|magazine=[[Next Generation (magazine)|Next Generation]]|issue=4|pages=68–69}}</ref>

After the release of ''Virtua Racing'', AM2 split into two teams; one began work on ''[[Virtua Fighter (video game)|Virtua Fighter]]'', while another started on ''[[Daytona USA (video game)|Daytona USA]]''.<ref name=":1" /> According to Suzuki, he wanted to develop a game with multiple joint movements, such as a [[Association football|soccer]] or [[Rugby union|rugby]] game. Finding that the Model 1 was not powerful enough to handle this many motions, Suzuki resorted to a game with only two moving characters at a time. With the massive success of [[Street Fighter II: The World Warrior|''Street Fighter II'']] in the industry at the time, he made the decision to make a 3D fighting game to compete.<ref>{{cite web |url=http://vf20th.sega.jp/interview131211.html|title=VF20th Anniversary Interview with Yu Suzuki |date=December 11, 2013|website=Virtua Fighter 20th Anniversary|publisher=[[Sega]]|language=ja |archive-url=https://web.archive.org/web/20181025234316/http://vf20th.sega.jp/interview131211.html|archive-date=October 25, 2018|url-status=live}}</ref> In developing the game, Suzuki identified the need for the game to be realistic, yet fun to play.<ref>{{cite magazine|date=November 1995|title=Nothing Compares to Yu|magazine=[[Next Generation (magazine)|Next Generation]]|publisher=[[Imagine Media]]|issue=11|pages=6–9}}</ref> ''Virtua Fighter'' became a huge success in Japan,<ref>{{cite magazine|date=January 1995|title=Street's Fighting for Squares... Virtua Fighter is Big in Japan|magazine=Ultimate Future Games|publisher=[[Future Publishing]]|issue=2|pages=28–29}}</ref> and its [[Sega Saturn]] port sold at a nearly one-to-one ratio with the console itself.<ref name="Kent4">{{cite book|last=Kent|first=Steven L.|title=[[The Ultimate History of Video Games: The Story Behind the Craze that Touched our Lives and Changed the World]]|publisher=Prima Publishing|year=2001|isbn=0-7615-3643-4|location=Roseville, California|pages=501–502|author-link=Steven L. Kent}}</ref>
[[File:VR Virtua Racing.jpg|thumb|Virtua Racing Twin Cabinet]]
For ''Daytona USA'', Nagoshi was director and chief designer, while Suzuki served as producer. The concept for the game was suggested by Tom Petit, head of Sega Enterprises USA, as a way to debut Sega's new Model 2 arcade system board. Sega mandated that ''Daytona USA'' had to be better than [[Ridge Racer (1993 video game)|''Ridge Racer'']], a game made by [[Namco]]. To accurately depict Daytona International Speedway, the developers used [[satellite imagery]] and sent staff to photograph the track; Nagoshi walked a full lap to get a feel for the banking in the corners.{{Sfn|Horowitz|2018|pp=199-204}} ''Daytona USA'' was released in Japan in August 1993, and worldwide in March 1994.{{Sfn|Horowitz|2018|pp=199-204}}<ref>{{cite magazine|date=October 1993|title=Daytona USA|magazine=[[Electronic Gaming Monthly]]|issue=51|page=222}}</ref> AM2 ported the game to Saturn in April 1995.<ref name="EGM70">{{cite magazine|last=Ogasawara|first=Nob|date=May 1995|title=The Creation of Daytona, and the Future Projects of AM2|magazine=[[Electronic Gaming Monthly]]|publisher=Sendai Publishing|issue=70|pages=70–71}}</ref><ref>{{cite magazine|date=December 1995|title=Virtua Fighter 2 Development Diary|magazine=[[Sega Saturn Magazine]]|publisher=[[Emap International Limited]]|issue=2|page=46}}</ref> The Saturn port was a launch title in the West.<ref>{{cite magazine|date=January 1996|title=1995: The Calm Before the Storm?|magazine=[[Next Generation (magazine)|Next Generation]]|publisher=[[Imagine Media]]|issue=13|page=47}}</ref><ref>{{cite magazine|date=July 1995|title=Sega Hopes to Run Rings Around the Competition with Early Release of the Saturn|magazine=[[Electronic Gaming Monthly]]|publisher=Sendai Publishing|issue=72|page=30}}</ref> ''Daytona USA'' was highly popular in arcades, and the twin cabinet was one of three 1995 recipients of the [[American Amusement Machine Association]]'s Diamond Awards, which are based strictly on sales achievements.<ref>{{cite magazine|date=May 1996|title=And the Winner Is...|magazine=[[Next Generation (magazine)|Next Generation]]|publisher=[[Imagine Media]]|issue=17|page=21}}</ref> In a 2002 report, Sega reported it to be one of the most successful arcade games of all time.<ref>{{cite web|url=https://www.segasammy.co.jp/japanese/ir/library/pdf/printing_archive/2002/sega/sega_annual_tuuki_2002.pdf|title=Sega Annual Report, 2002|date=2002|publisher=[[Sega Sammy Holdings]]|url-status=live|archive-url=https://web.archive.org/web/20160303231553/https://www.segasammy.co.jp/japanese/ir/library/pdf/printing_archive/2002/sega/sega_annual_tuuki_2002.pdf|archive-date=3 March 2016|access-date=4 September 2019}}</ref>

Over the course of the remainder of the 1990s, Suzuki's primary concern in arcades were the [[Virtua Fighter|''Virtua Fighter'' series]] and working as a producer for other titles.<ref name=":12">{{cite magazine|date=January 2016|title=The Arcade Pioneer: The Story of Yu Suzuki|magazine=[[Retro Gamer]]|publisher=[[Future plc]]|issue=150|pages=96–99}}</ref> Subsequently, AM2 released ''[[Virtua Cop]]'' and ''[[Virtua Fighter 2]]'' for the Model 2.{{Sfn|Horowitz|2018|pp=204-210}} Produced in twelve months, ''Virtua Fighter 2'' was an even greater success in Japan than its predecessor.<ref name=":13" /> In a 1996 interview, Suzuki stated in an interview his philosophy to be not an imitator, but a pioneer in the arcade industry. He also described the palm tree logo of AM2 as representing reliance and peace of mind.<ref>{{cite magazine|date=June 1996|title=AM Tidbits|magazine=Sega Saturn Magazine|language=ja|pages=138–143}}</ref> Further titles developed in the end of 1990s included ''[[Virtua Cop 2]]'', ''[[Fighting Vipers]]'', [[Daytona USA 2|''Daytona USA 2: Battle on the Edge'']], and ''[[SpikeOut]]''. ''Daytona USA 2'' and ''SpikeOut'' made use of the Model 3 system board.{{Sfn|Horowitz|2018|pp=215-220, 233-240}}