Sega has announced that its new established development studio headed by former Sega AM2 CEO Yu Suzuki will be named Digital Rex, instead of its tentative name Cinematic Online Games. It will employ 27 people. Instead of its tentative name WOW Works, the company created by the merger of WOW Entertainment and Overworks will now be called Sega WOW. 223 people will be working at this studio.

The two companies will join Sonic Team, Sega AM2, Amusement Vision, Smilebit and Hitmaker as Sega's seven internal development studios under the company's new structure effective October 1st, 2003.

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