Editing Sega AM2 (section)

=== AM2 of CRI and SEGA-AM2 Co., Ltd. ===
In April 2000, [[CSK Research Institute Corp.|CSK Research Institute]] (CRI) took management over AM2. CRI was a subsidiary of [[SCSK|CSK Corporation]], which was Sega's parent company at the time, and had previously published ''[[Aero Dancing]]''. The new division became known as "AM2 of CRI", and Suzuki remained in charge.<ref>{{cite web|url=https://www.gamespot.com/articles/new-management-for-segas-am2/1100-2447075/|title=New Management for Sega's AM2|last=Sato|first=Yukiyoshi Ite|date=April 27, 2000|website=[[GameSpot]]|access-date=March 31, 2020}}</ref>  Also in 2000, Sega restructured its arcade and console development teams into nine semi-autonomous studios headed by the company's top designers.<ref name=":22" /><ref name="Dreamcast memorial">{{cite web|url=http://www.1up.com/features/9999-dreamcast-memorial |title=9.9.99, A Dreamcast Memorial|last=Parish|first=Jeremy|date=September 3, 2009 |website=1UP.com |url-status=dead|archive-url=https://archive.today/20140201012313/http://www.1up.com/features/9999-dreamcast-memorial|archive-date=February 1, 2014|access-date=December 10, 2016|df=mdy}}</ref> Sega's design houses were encouraged to experiment and benefited from a relatively lax approval process.<ref name="Avant-Garde">{{cite journal|last1=Montfort|first1=Nick|last2=Consalvo|first2=Mia|title=The Dreamcast, Console of the Avant-Garde |journal=Loading... The Journal of the Canadian Game Studies Association|volume=6|pages=82–99|number=9}}</ref>  During the development of ''[[Shenmue (video game)|Shenmue]]'', Nagoshi requested and was granted [[Ryu Ga Gotoku Studio|his own studio]], leaving AM2.<ref>{{cite web|url=https://www.gamesradar.com/from-shenmue-to-yakuza-toshihiro-nagoshi-looks-back-on-an-illustrious-career-of-japanese-game-development/|title=From Shenmue to Yakuza, Toshihiro Nagoshi looks back on an illustrious career of Japanese game development|last=Brown|first=Nathan|date=December 28, 2018|website=[[GamesRadar+]]|access-date=March 31, 2020|url-status=live|archive-date=January 7, 2019|archive-url=https://web.archive.org/web/20190107015844/https://www.gamesradar.com/from-shenmue-to-yakuza-toshihiro-nagoshi-looks-back-on-an-illustrious-career-of-japanese-game-development/}}</ref>

AM2 developed what Sega hoped would be the [[Dreamcast]]'s [[Killer application|killer app]] in ''Shenmue'', a "revenge epic in the tradition of [[Cinema of China|Chinese cinema]]."<ref name=":22" /><ref name="History">{{cite web|url=https://ign.com/articles/1999/07/14/shenmue-the-history|title=''Shenmue'', the History|date=July 13, 1999|website=[[IGN]]|url-status=live|archive-url=https://web.archive.org/web/20141030003504/http://www.ign.com/articles/1999/07/14/shenmue-the-history|archive-date=October 30, 2014|access-date=October 26, 2014}}</ref> The [[action-adventure game]] involved the quest of protagonist Ryo Hazuki to avenge his father's murder,<ref name="Ages">{{cite web|url=https://ign.com/articles/2007/08/08/shenmue-through-the-ages|title=''Shenmue'': Through the Ages|last=Kolan|first=Patrick|date=August 7, 2007|website=[[IGN]]|url-status=live|archive-url=https://web.archive.org/web/20141104113911/http://www.ign.com/articles/2007/08/08/shenmue-through-the-ages|archive-date=November 4, 2014|access-date=October 26, 2014}}</ref> but its main selling point was its rendition of the Japanese city of [[Yokosuka, Kanagawa|Yokosuka]], which included a level of detail considered unprecedented for a video game.<ref name="Mott1">{{cite book|last=Mott|first=Tony|title=1001 Video Games You Must Play Before You Die|title-link=1001 Video Games You Must Play Before You Die|publisher=Universe Publishing|year=2013|isbn=978-0-7893-2090-2|location=New York City|pages=406}}</ref> Incorporating a [[Simulation video game|simulated]] day/night cycle with variable weather, [[non-player character]]s with regular schedules, and the ability to pick up and examine detailed objects (also introducing the [[Quick-time event]] in its modern form<ref name="Mott1" /><ref>{{cite web|url=http://www.escapistmagazine.com/articles/view/video-games/columns/waypoints/1310-On-Screen-Help-In-Game-Hindrance|title=On-Screen Help, In-Game Hindrance|last=Lamosca|first=Adam|date=June 24, 2007|work=[[The Escapist (magazine)|The Escapist]]|url-status=live|archive-url=https://web.archive.org/web/20140502182342/http://www.escapistmagazine.com/articles/view/video-games/columns/waypoints/1310-On-Screen-Help-In-Game-Hindrance|archive-date=May 2, 2014|access-date=October 26, 2014}}</ref>), ''Shenmue'' went over budget and was rumored to have cost Sega over $50 million.<ref name="Ages" /><ref name="Mott1" />{{sfn|Kent|2001|page=578}} Originally planned as the first installment in an 11-part saga, ''Shenmue'' was eventually downsized to a trilogy.<ref name=":22" /><ref>{{cite web|url=http://www.polygon.com/2014/3/19/5527120/yu-suzuki-shenmue-gdc-2014-classic-game-postmortem|title=Creator Yu Suzuki shares the story of ''Shenmue''<nowiki>'</nowiki>s development|last=Corriea|first=Alexa Ray|date=March 19, 2014|work=[[Polygon (website)|Polygon]]|url-status=live|archive-url=https://web.archive.org/web/20150628071042/http://www.polygon.com/2014/3/19/5527120/yu-suzuki-shenmue-gdc-2014-classic-game-postmortem|archive-date=June 28, 2015|access-date=December 17, 2014}}</ref> According to Sega of America president [[Peter Moore (businessman)|Peter Moore]], ''Shenmue'' sold "extremely well", but the game had no chance of making a profit due to the Dreamcast's limited installed base.{{sfn|Kent|2001|pages=587, 578}} The high amount ''Shenmue'' went over budget was also a factor in the game's lack of profitability.<ref name=":12" /> Its sequel, ''[[Shenmue II]]'', "was completed for a much more reasonable sum".<ref name="IGN History of Dreamcast2">{{cite web|url=https://ign.com/articles/2010/09/10/ign-presents-the-history-of-dreamcast|title=IGN Presents the History of Dreamcast|last=Fahs|first=Travis|date=September 9, 2010|website=[[IGN]]|url-status=live|archive-url=https://web.archive.org/web/20140928201508/http://www.ign.com/articles/2010/09/10/ign-presents-the-history-of-dreamcast|archive-date=September 28, 2014|access-date=October 31, 2014}}</ref>{{sfn|Kent|2001|page=578}}[[File:Sega F355 Challenge.jpg|alt=An arcade cabinet with a steering wheel|thumb|''[[F355 Challenge]]'', developed by AM2]]In addition to the mixed reception for ''Shenmue'', IGN's Travis Fahs stated that "the [Dreamcast] era wasn't as kind to [AM2] as earlier years"—citing (among others) ''[[F355 Challenge]]'' as an "acclaimed" arcade game that "didn't do much at home", and [[Genki (company)|Genki]]'s port of ''[[Virtua Fighter 3]]'' as inferior to the arcade version, "which was already a couple years old and never as popular as its predecessors."<ref name="IGN History of Dreamcast2" /><ref name=":0">{{cite magazine|author=Matt|date=December 2000|title=F355 Challenge: Passione Rossa|magazine=[[Game Informer]]|volume=10|issue=92|page=124}}</ref><ref>{{cite magazine|url=https://www.gameinformer.com/reviews/review_detail.cfm?ITEM_ID=3251|title=''Virtua Fighter 3tb''|date=October 25, 1999|magazine=Game Informer|url-status=dead|archive-url=https://web.archive.org/web/20000603210245/http://www.gameinformer.com/reviews/review_detail.cfm?ITEM_ID=3251|archive-date=June 3, 2000|access-date=October 26, 2014}}</ref> The ''[[Virtua Fighter]]'' series would experience a "tremendous comeback" with the universally acclaimed ''[[Virtua Fighter 4]]''—which saw a console release exclusively on [[PlayStation 2]].<ref name="IGN History of Dreamcast2" /><ref>{{cite web|url=https://www.metacritic.com/game/virtua-fighter-4/critic-reviews/?platform=playstation-2|title=''Virtua Fighter 4''|website=Metacritic|url-status=live|archive-url=https://web.archive.org/web/20150117132701/http://www.metacritic.com/game/playstation-2/virtua-fighter-4/critic-reviews|archive-date=January 17, 2015|access-date=October 26, 2014}}</ref> In Japanese arcades, ''Virtua Fighter 4'' proved to be highly influential with its VF.NET system, paving the way for arcade games with network features.<ref>{{cite web|url=http://www.1up.com/do/feature?cId=3149135|title=The Last Arcade Crusaders|last=James|first=Mielke|date=March 31, 2006|website=1up.com|url-status=live|archive-url=https://web.archive.org/web/20070914101054/http://www.1up.com/do/feature?cId=3149135|archive-date=September 14, 2007}}</ref> The quest mode of ''[[Virtua Fighter 4: Evolution]]'' on PlayStation 2, used AI mined from players in Japan playing through VF.NET.<ref>{{cite web|title=Virtua Fighter 4 – Hardcore Gaming 101|url=http://www.hardcoregaming101.net/virtua-fighter-4/|access-date=2021-06-24|language=en-US}}</ref>

In 2001, AM2 of CRI was renamed to SEGA-AM2 Co., Ltd.<ref>{{cite web|url=https://www.gamasutra.com/view/news/91644/CSK_Research_Institute_Becomes_SegaAM2_Co_Ltd.php|archive-url=https://web.archive.org/web/20210825052558/https://gamasutra.com/view/news/91644/CSK_Research_Institute_Becomes_SegaAM2_Co_Ltd.php|url-status=dead|archive-date=August 25, 2021|title=CSK Research Institute Becomes Sega-AM2 Co. Ltd.|date=August 1, 2001|website=[[Gamasutra]]|access-date=March 31, 2020}}</ref> After serving as a producer on ''[[Virtua Cop 3]]'' and ''[[OutRun 2]]'',<ref name=":12" /> Suzuki left AM2 on October 1, 2003, in order to start a new studio with Sega, called Digitalrex.<ref name=":4">{{cite web|url=http://archive.videogamesdaily.com/news/200307/037.asp|title=Sega Studio Mergers: Full Details|last=Doree|first=Adam|date=July 25, 2013|website=Kikizo|publisher=Superglobal |archive-url=https://web.archive.org/web/20150608223108/http://archive.videogamesdaily.com/news/200307/037.asp |archive-date=June 8, 2015|access-date=March 31, 2020|url-status=live}}</ref><ref>{{cite web |url=https://blog.screenweek.it/2018/01/magic-2018-da-tite-kubo-a-yu-suzuki-a-bill-sienkiewicz-ospiti-e-programma-595315.php/|title=Magic 2018 – Da tite kubo a Yu Suzuki a Bill Sienkiewicz ospiti e programma|last=Vazzoler |first=Marlen|date=January 27, 2018|website=ScreenWeek|language=it|access-date=March 31, 2020}}</ref>  He was promoted to non-executive board director.<ref name=":4" />  Hiroshi Kataoka was placed in charge of AM2.<ref name=":4" /><ref>{{cite web|title=Sega-AM2 gets new president|url=https://www.gamespot.com/articles/sega-am2-gets-new-president/1100-6071115/|date=July 8, 2003|website=[[GameSpot]]|access-date=May 7, 2020}}</ref>  Kataoka, who had led research and development at AM2 for a year, had worked on numerous projects for Sega and Yu Suzuki's division as old as ''Space Harrier'' to ''[[Virtua Fighter 4 Evolution]]''.<ref>{{cite web|url=https://www.gamesindustry.biz/articles/sega-reshuffles-development-studios|title=Sega reshuffles development studios|last=Fahey|first=Rob|date=July 9, 2003|website=Gamesindustry.biz|access-date=March 31, 2020}}</ref> Makoto Osaki became AM2's head of development, reporting to Kataoka.<ref>{{cite web |url=http://archive.videogamesdaily.com/features/sega_am2_interview_june04.asp|title=Sega-AM2: The Kikizo Interview 2004|last=Doree|first=Adam|date=June 18, 2004|website=Kikizo|publisher=Superglobal |archive-url=https://web.archive.org/web/20190515155830/http://archive.videogamesdaily.com/features/sega_am2_interview_june04.asp|archive-date=May 15, 2019|access-date=March 31, 2020|url-status=live}}</ref>  At the same time as the changes, a number of Sega's studios were merged.  However, AM2 did not merge with any other studio.<ref name=":4" /><ref>{{cite web|title=Sega reveals new development studio structure|url=https://www.gamespot.com/articles/sega-reveals-new-development-studio-structure/1100-6072725/|last=Niizumi|first=Hirohiko|date=July 30, 2003|website=[[GameSpot]]|access-date=May 7, 2020}}</ref>