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Originally Sega R&D AM-5, Sega Rosso was renamed during an internal re-shuffling prior to the launch of the Dreamcast in 1998.  Sega Rosso was named after the Italian word for 'red', as this hot-blooded color was considered the opposite of Sega's traditional 'cool' color, blue. 
Sega AM-5's team came in part from the dev team behind Namco's original Ridge Racer game, and as AM-5 the followed that with games like Sega Rally, Sega Touring Car Championship, as well as the Star Wars Trilogy arcade title.   
 As Sega Rosso, they would follow up with the futuristic raquetball game Cosmic Smash, as well as a licensed Cardcaptor Sakura title, the GBA port of Sega Rally, and several Initial D racing games across a number of platforms. 
In 2003, Hitmaker was merged into Sega Rosso.  In 2004, the combined studio was renamed Sega AM-3 during a major restructuring following Sega's purchase by Sammy

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