David Rosen: A Pioneer of the Arcade and Video Game Industry

David Rosen, co-founder of Sega and a pivotal figure in the arcade and video game industry, passed away on December 25, 2025, at the age of 95, surrounded by family in Los Angeles. His career began in the 1950s after serving in the U.S. Air Force, where he was stationed in Japan during the Korean War. Intrigued by Japan's recovering economy, he established Rosen Enterprises, initially focusing on art and photography before shifting to importing coin-operated amusement machines.

Express TribuneSega's American co-founder David Rosen dies at 95 years of ageSega co-founder and arcade founding father, David Rosen, dies age 95Sega Co-Founder David Rosen Has Passed AwayThe Guardian

In 1965, Rosen merged his company with Nihon Goraku Bussan, forming Sega Enterprises, Ltd. Under his leadership, Sega transitioned from importing to designing its own arcade games, with notable successes like the submarine shooting game Periscope in 1966. This marked the beginning of Sega's influence in the arcade sector, establishing it as a major player alongside companies like Namco and Taito.

The Guardian

Rosen's foresight in recognizing industry trends was instrumental in Sega's growth. He hired Hayao Nakayama, who became president of Sega Japan, and together they expanded the company’s reach. In the 1980s, Rosen shifted focus to home gaming, launching the Sega Master System in 1986, which found success in Europe and South America despite struggling in the U.S. market.

Sega's American co-founder David Rosen dies at 95 years of age

When introducing the Sega Mega Drive in Japan in 1988, Rosen insisted on rebranding it as Genesis for the U.S. market, targeting a teenage demographic with aggressive marketing strategies. This included the memorable slogan, "Genesis does what Nintendon’t," which helped position Sega as a competitor to Nintendo.

The Guardian

Despite initial successes, Sega faced challenges in the home console market, particularly with the rise of Sony's PlayStation. Rosen remained active in various senior roles until his retirement in 1996. His contributions to Sega and the gaming industry at large were significant, as he helped establish Sega of America and guided the company through various ownership changes.

Sega co-founder and arcade founding father, David Rosen, dies age 95

Rosen's impact extended beyond Sega; he was also the first chairman of the Japan Amusement Association, influencing the development of Japan's arcade industry. His vision and leadership laid the groundwork for the modern video game business, leaving a lasting legacy in both arcade entertainment and gaming culture.

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Industry publications and colleagues have acknowledged Rosen's profound influence on the gaming landscape. His ability to identify and nurture talent within the industry, such as Nakayama, was noted as a key factor in Sega's rise. Rosen himself reflected on his journey, stating, “Sega was involved in videogames very shortly after they were invented.”

Express Tribune

• “Right off the bat, the machines were tremendously successful,” — David Rosen

Sega's American co-founder David Rosen dies at 95 years of age

• “We decided to merge, and in trying to establish the name of the company, we decided Sega was the best known name, and we took Enterprises from Rosen Enterprises,” — David Rosen

Sega's American co-founder David Rosen dies at 95 years of age

• “ Spurred on by Rosen’s vision, Katz marketed the Genesis as a games console for teenagers, not children, using TV ads which combined video game visuals with flashing images and rock music and the immortal phrase: Genesis does what Nintendon’t.” — Sega marketing slogan

The Guardian

• “At this point, I was opening up arcades with these shooting and hunting games throughout Japan, and we were fortunate… I don’t know [how many we had], but by the time I left, there wasn’t a city in Japan that didn’t have one of our arcades.” — David Rosen

Sega's American co-founder David Rosen dies at 95 years of age

David Rosen's passing marks the end of an era for the arcade and video game industry, but his legacy will continue to influence future generations of gamers and developers.

Express Tribune