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| A picture of David Rosen, the co-founder of SEGA |
The video game world has lost one of its true architects. David Rosen, the American entrepreneur who co-founded the iconic company SEGA, passed away peacefully at his home in the Hollywood Hills on Christmas Day, surrounded by his family. He was 95 years old.
News of his passing was first reported by industry publication RePlay Magazine, confirming the end of an era for the arcade and console gaming landscape he helped define. Rosen’s vision and business acumen were instrumental in transforming SEGA from a simple importer into a global entertainment powerhouse, directly shaping the childhoods of millions in the 80s and 90s.
From Air Force Pilot to Japanese Businessman
Born in Brooklyn, New York, in 1930, Rosen’s life was one of remarkable adaptation and foresight. After serving as a pilot in the U.S. Air Force during the Korean War, he found himself stationed in Japan. Captivated by the nation's post-war rebuilding spirit, he decided to stay.
He launched Rosen Enterprises in 1954, initially dealing in portrait photography and exporting Japanese art. But Rosen had a keen eye for emerging trends. By the late 1950s, he pivoted to importing American coin-operated amusement machines, like jukeboxes and pinball tables, into Japanese businesses. The venture was a massive success, tapping into a growing desire for leisure.
The Birth of SEGA and the Arcade Golden Age
The pivotal moment came when Rosen Enterprises merged with Nihon Goraku Bussan, a company known as Service Games. As CEO, Rosen combined the first two letters of "Service" and "Games" to create the name SEGA. Under his leadership, the company evolved from an importer to a creator.
SEGA began designing its own arcade cabinets, scoring a worldwide hit in 1966 with "Periscope," an immersive submarine simulator. This kicked off a golden age for SEGA in the arcades, a domain they would later dominate with legendary titles like Out Run, After Burner, and Virtua Fighter.
For more detailed insights from the original report, you can read the article from RePlay Magazine here.
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| The Sega Genesis Model 2 with a 6 button controller |
The Console Wars and a Lasting Legacy
Perhaps Rosen’s most famous chapter began in the 1980s. After orchestrating a management buyback of SEGA’s Japanese operations, he returned to the U.S. to helm SEGA of America. His mission: to challenge Nintendo's dominance in the living room.
He candidly acknowledged Nintendo's role in reviving the home market after the 1983 crash, telling an interviewer that SEGA's first attempt, using "off-the-shelf parts," failed to compete. This led to the 1986 launch of the Master System, and later, the company's defining home console: the Sega Genesis.
Rosen’s marketing genius was pivotal. He brought in experienced executive Michael Katz, who helped structure the aggressive campaign that would become gaming folklore: “SEGA does what Nintendon’t.” This bold slogan, targeting an older teen audience, carved out a crucial niche and ignited the fierce 16-bit "console wars" that defined a generation.
A Quiet Retirement and Lasting Honors
Rosen retired from day-to-day operations in 1996 but remained a revered figure. He was inducted into the American Amusement Machine Association Hall of Fame and is often hailed as a founding father of Japan’s arcade scene. Even in retirement, fans would occasionally recognize him and shout the iconic "Sega!" yell from the company's commercials—a fitting tribute to his enduring impact.
David Rosen’s funeral was held on January 2, 2026, at Inglewood Park Cemetery. He is survived by his family, including his adopted daughter. His journey—from a Brooklyn kid to an Air Force pilot, a businessman in Japan, and finally a legend of interactive entertainment—reflects the very innovation and global connectivity that video games themselves represent.
His legacy lives on every time someone hears a Sonic the Hedgehog ring, feels the rumble of a Virtua Fighter match, or remembers the thrill of a time when SEGA offered a rebellious alternative.
For those looking to revisit the classics that defined David Rosen's console legacy, you can explore the Sega Genesis Classics collection on Amazon.