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Sega has had in-house studios and subsidiary studios from 1983 to date.
In an interview with Sega-16, Mark Cerny explained the working construct of Sega Studios Japan during the pre- and post-Sega Master System days.
"They had one room with about forty people in it, and it was trying to make, in this one room, essentially all games that would be needed to launch and support the Master System. A typical project was one or two programmers, three months. And the pressure was very, very high.
But at the same time, we did some great work. And there were some very talented people, both Rieko Kodama and Yuji Naka were in this room, and Yu Suzuki was only two floors away, in the same building, reinventing arcade games."[1]
It can be assumed that until 1998 a rigid team structure was not followed, therefore members were not restricted to work only on their own studio's game. Hence, several different teams contributed in the development of a game whereas only the dominant studio was credited. For example, Sega Technical Institute collaborated with studios such as Sonic Team and AM1 and produced multiple Sega games uncredited, such as the Sonic the Hedgehog games on the Mega Drive, and Die Hard Arcade on the Sega Saturn.
It appears that the development division was largely restricted to arcade development. However, there were some exceptions such as Sword of Vermilion which was designed from the ground up by DD #2 for Sega Mega Drive a home console.
Shinobu Toyoda was the leader of Sega CD later known as AM8 and eventually Sonic Team. Under Toyoda's leadership, project designer Naoto Ōshima and lead programmer Yuji Naka pitched the idea of Sonic the Hedgehog as company mascot to Sega CEO. Hayao Nakayama. Yuji Naka became Studio head afterwards [2]
Sega reorganized and expanded upon their R&D studios, and the Consumer Divisions and Development Divisions were all now renamed to Sega-AM Teams (Amusement Machine Research & Development Teams).
The AM structure wasn't adamantly followed, often games were developed by game titled teams such as Team Shinobi (AM7) and Sonic Team (AM8), while several members were from other internal and external studios.
The name "Sonic Team" has been used for AM8 since the inception of Sonic the Hedgehog in 1991, but the team internally continued as AM8/STI until 1995, when they officially changed their name to Sonic Team.[3] NiGHTS Into Dreams... was the first game to have the Sonic Team logo on the boxart, officially separating it from the Amusement Machine Research & Development teams.[4]
Outside of Fighters Megamix and Digital Dance Mix, the focus of AM1 to AM5 was restricted to Arcade development
In 1999, the original character designer of Sonic the Hedgehog, Naoto Ōshima, left Sega along with other employees due to disagreements with Yuji Naka as to where the future of the franchise was headed. Artoon was founded by Naota Oshima and has many former Sonic Team employees. Around the same time, Team Andromeda dissolved along with its lead Yukio Futatsagi leaving the company. Former Team Andromeda employees have since then worked at Artoon, feelplus, Grounding Co. and Land Ho.
In 2000, Sega converted all their in-house studios into 2nd Party Studios, for more independence and a bigger focus on the consumer market by former arcade-focused studios. Former AM5 head Tetsuya Mizuguchi formed his own studio by the name of United Game Artists (UGA). Several Team Andromeda members have joined Smilebit and United Game Artists.
In 2003, due to management disagreements, UGA-led Tetsuya Mizuguchi and the Rez team left Sega to found Q Entertainment. The rest of the UGA team composed of Space Channel 5 developers was folded back into Sonic Team.
Hisao Oguchi was appointed to CEO in 2001, and Mie Kumagai replaced him as the studio head of Hitmaker/AM3
Hirokazu Yasuhara, who was the lead designer and director of the original Sonic the Hedgehog games, left Sega in 2002 and joined Naughty Dog, with the last position being designer of Visual Concepts Floigan Bros..
Due to decline of revenue of arcades overseas during the 2000s, more focus went on medal games, redemption games, and trading card games, rather than traditional video games.
Global Entertainment R&D Division which is was formed by the merger of Sonic Team, United Game Artists, and Overworks. The two departments were led by Sonic Team and Overworks producers, such as Yuji Naka and Akira Nishino. In 2006, Yuji Naka went independent to form Prope. Akinori Nishiyama and then Takashi Iizuka replaced him as the Producer.
New Entertainment R&D Division is essentially the AM6 or Smilebit of before with sports titles. However Toshihiro Nagoshi and his team were integrated due to moving outside the arcade division, and gaining large control in this division. Takayuki Kawagoe continues to have a Producer and Executive role as he had before in the AM6/Smilebit division.
Amusement Software R&D Division which focuses on the development of games for arcade and slot machines. The division is headed by Hiroshi Kataoka, Atsushi Seimiya and Mie Kumagai.
Loving Deads: The House of the Dead EX (2008) Virtua Fighter 5 (2006), Virtua Fighter 5 R (2008), Virtua Tennis 3 (2006) Hummer Extreme Edition (2009), Primeval Hunt (2008), Harley Davidson: King of the Road (2009)
Global Entertainment R&D Division changed its name to Consumer R&D Division, and New Entertainment R&D Division merged with Consumer R&D Division.
Amusement R&D Division which focuses on the development of games for arcade and slot machines.
Sega Networks focuses on development for smartphones and tablets.
Sega began contracting subsidiary studios in 1983.
Sega, Dreamcast, RED Entertainment, Sonic Team, Yu Suzuki
Sega, Japan, Ōta, Tokyo, Intellectual property, Yuji Naka
Japan, Galaxy Fraulein Yuna, Animation, Gungrave, Wii
Dreamcast, Shenmue, Microsoft Windows, Sega, Japan
Osaka, Sonic Team, Sega Genesis, Sega, Osaka Prefecture
Dreamcast, Sega, Japan, Sega Genesis, Video game
Sega, Dreamcast, Compact Disc, Letterbox, Sega Genesis
Sega, Sega Genesis, Dreamcast, Portable media player, Mp3