The video game industry has lost one of its foundational figures with the passing of David M. Rosen, co-founder of Sega, at the age of 95 on December 25, 2025. Rosen’s journey from U.S. Air Force service to becoming a key architect of one of the most iconic gaming companies in the world reflects the extraordinary evolution of gaming itself.
Born in Brooklyn in 1930, Rosen’s life took a defining turn when he was stationed in Japan after World War II. Rather than returning to the United States, he stayed on and founded Rosen Enterprises in 1954, initially capitalising on the need for easy access to ID photos, importing hundreds of photo booths (which I personally took advantage of at the Immigration office in Shinagawa multiple times). As interest in entertainment grew in post-war Japan, Rosen shifted his focus to importing coin-operated amusement machines like pinball machines.
In 1965 Rosen merged his business with Nihon Goraku Bussan, a firm already distributing arcade machines, to form Sega Enterprises Ltd. The name “Sega” itself came from a contraction of SErvice GAmes, reflecting its roots in arcade entertainment. Under Rosen’s leadership as CEO and chairman, Sega expanded rapidly in Japan and internationally, bringing titles like Periscope and Killer Shark (which cameoed in Jaws) to market and establishing a dominant presence in arcades worldwide.
It’s been said that his real skill lay in sourcing talent with vision, notably wanting to hire Hayao Nakayama so badly that he acquired his company. Nakayama eventually became president of SEGA throughout much of the 80s and 90s.
He recognised the importance of expanding Sega’s reach globally, playing a pivotal role in founding Sega of America and establishing Sega as a serious competitor to rivals like Nintendo during the golden age of home consoles. His leadership helped shape Sega’s identity, from arcade cabinets to living rooms around the world.
Beyond console rivalry, Rosen’s contributions shaped the arcade scene itself. His early decision to import and popularise coin-operated machines laid the groundwork for the vibrant arcade culture of the 1970s and 1980s in Japan and abroad. That foundation helped pave the way for later innovations in interactive entertainment that continue to influence the industry today.
Rosen retired in 1996 after decades of leadership and innovation, leaving behind a legacy that extends far beyond Sega’s recognisable blue logo and classic titles. His impact is evident in the very structure of the gaming world — from the arcades that introduced millions to electronic play to the home consoles that defined generations.
As fans, developers, and historians reflect on his life, it’s clear that David Rosen was more than a business leader. He was a pioneer whose ideas and ambition helped shape how we play, compete, and connect through games. His legacy lives on in the memories of players and the enduring influence Sega has had on pop culture and interactive entertainment.
Rest in peace, David M. Rosen — thank you for the games, the arcades, and the worlds you helped create.
