The NAOMI (New Arcade Operation Machine Idea) is the successor to the Sega Model 3. Sega first demonstrated NAOMI publicly at the 1998 Amusement Machine Show (an annual trade show hosted in Tokyo by the Japan Amusement Machinery Manufacturers Association). After the show, Sega released the first NAOMI title to the Japanese market: The House of the Dead 2.

NAOMI uses some of the same electronic components as Sega's Dreamcast home game console: Hitachi SH-4 CPU, PowerVR Series 2 GPU (PVR2DC), and Yamaha AICA Super Intelligent Sound Processor based sound system. However, NAOMI has twice as much system memory, twice as much video memory, and four times as much sound memory.