Complex sentence: The division was established as Sega AM8 in Ōta, Tokyo, Japan in 1988, and was renamed to Sonic Team in 1991 after the release of "Sonic the Hedgehog" for the Sega Genesis home console.
Split into simpler sentences: The division was established as Sega AM8 in Ōta, Tokyo, Japan in 1988. The studio was renamed to Sonic Team in 1991 after the release of "Sonic the Hedgehog" for the Sega Genesis home console.