Famous for: Rez, Jet Set Radio, Crazy Taxi, many others
Sega had always been supported by strong internal development teams, like AM2 (Virtua Fighter) and Sonic Team, and the former console maker further expanded its portfolio of developers after restructuring game creation around the launch of the Dreamcast. More than a half dozen teams were formed to make unique titles for the Dreamcast, including Amusement Vision, Smilebit, WoW, and United Game Artists.
Thanks to this expansion of independent creativity, the ill-fated Dreamcast was home to some of the best creations in Sega’s history, games like Space Channel 5, Skies of Arcadia, and the NFL 2K series. The studio system was kept in place even after Sega switched to making games for its former competitors, with memorable titles like Super Monkey Ball and F-Zero GX, but that situation didn’t last long. Following Sega’s merger with pachinko company Sammy, the studios were merged back into the rest of Sega, and Sega’s output of games hasn’t been the same since. The move also lead to several of heads of the second party studios leaving Sega altogether, including Tetsuya Mizaguchi, who went on to form Q Entertainment (Lumines, Meteos).