Following the success of the original 'Sonic the Hedgehog', Sega officially establishes Sonic Team as a dedicated development group, with Yuji Naka at its helm. The team focuses primarily on Sonic titles but also explores other game genres.

As the head of Sonic Team, Naka oversees the development of numerous critically acclaimed and commercially successful Sonic games, solidifying the franchise's status as a global phenomenon.

Under Naka's leadership, Sonic Team begins to diversify its portfolio, developing games like 'Nights into Dreams...' alongside Sonic titles. This allows the team to explore different genres and showcase its creative versatility.