From Sega Retro
Sega Amusement Machine Research and Development Department 2 (popularly known as Sega-AM2 or simply AM2) is a research and development team for the video game company Sega. Originally known as "Sega Amusement Developing Section 8", AM2 was previously headed up by famed designer Yu Suzuki. It is potentially the most known Sega AM team, following Sonic Team (AM8). Though still its own entity within Sega, the AM2 name has since fallen out of use.
Sega AM2 are credited for revolutionising gaming in the arcade industry numerous times. Under Yu Suzuki the team have produced the majority of popular and well known Sega franchises. Throughout the late 1980s and 1990s Sega AM2 were at the forefront to the arcade industry, with many of their games being equally successful on Sega's home consoles. Their back catelogue includes Hang-On, Space Harrier, OutRun, After Burner, Super Hang-On, Virtua Racing, Virtua Fighter, Daytona USA, Fighting Vipers and one of the most expensive-to-produce video games of all time, Shenmue, among many others. A number of these have been massive successes for the team, and Sega as a whole.
(note this is vastly incomplete)