After trials in September, the following deficiencies in the design were discovered:
Insufficient off-road performance on soft terrain, and high pressure on front road wheels.
High pressure on the commander, due to also performing the duties of a gunner.
Insufficient operational range.
Difficulty in using gun ports due the position of the ammo rack.
Insufficient robustness of casemate armour plates.
Rapid buildup of gases in the fighting compartment.
Two new prototypes were built on the PzIII chassis to resolve these issues. The vehicle was lightened by using 35 mm armour plates instead of 45 mm, and was equipped with wider winter tracks. The commander and gunner switched places, with the commander now performing horizontal aiming. Front hatches were removed to increase protection. The commander was also given an improver periscope and panoramic sight. The gun ports were replaced with those of superior design from the SU-76I. Their size allowed not only the use of the Nagant revolver, but any small arms used by the Red Army. The rate of fire was increased (according to Svirin, to a very rapid 7-8 RPM) by adding a loading tray. Large and awkward gun shields were replaced with an improved mantlet, more capable of protecting the weapon from bullets and shrapnel. An exhaust fan directly above the gun helped vent gases after firing.
SG-122, improved prototype, front view, cutaway.
They were tested at the Gorohovets proving grounds shortly after the SU-122 decree, on December 5th. The SU-35 (SU-122) participated in these trials as well. Based on trial results, orders for the SG-122 were cancelled. Only 21 of these vehicles were produced. It is unknown how many used PzIII hulls and how many used StuG hulls, but M. Svirin writes that 8 StuG hulls were used for conversion into SU-76Is and SG-122s.
Actual combat use was complicated by a lack of spare parts and the use of a captured radio, which operated on a different range of frequencies than Soviet ones. In February of 1943, all existing vehicles were transferred to training units.
One experimental vehicle was produced using the PzIV chassis, indexed SU-122/T-4.