David Rosen, co-founder of Sega and a pioneer of the arcade industry, passed away on December 25, 2025, at his home in Los Angeles, at the age of 95. His death marks the end of an era for the video game industry he helped build.

From the military to a visionary entrepreneur

Born on January 22, 1930, in Brooklyn, Rosen served in the U.S. Air Force from 1948 to 1952, mainly in Japan during the Korean War. After his service, he made the bold decision to remain in Japan. In 1954, he founded Rosen Enterprises, initially focusing on photo studios for identification cards.

The decisive turning point came in 1957, when Rosen obtained a special license to import American arcade machines into Japan. As he recalled in 1996: “Right from the start, the machines were phenomenally successful. I was opening arcades all over Japan, and we were lucky.”

The birth of Sega

In 1965, Rosen Enterprises merged with Nihon Goraku Bussan, also known as Service Games. From this union was born Sega Enterprises Ltd., whose name comes from the contraction of “SErvice GAmes”. Rosen became CEO of this new entity, which would go on to shape the history of electronic entertainment.

The following year, Sega released Periscope, its first original game. This electromechanical submarine simulation game achieved massive international success and established Sega as a major export player. Periscope was revolutionary for its time: players aimed through a periscope and fired “torpedoes” represented by colored beams of light to sink cardboard ships, with innovative sound and lighting effects.

Rosen deeply understood the importance of the arcade as a social and entertainment space in post-war Japan. He expanded arcade venues across the country, creating places where people could gather and have fun. This vision transformed arcades into a major cultural phenomenon that later spread worldwide, influencing the entire modern video game industry.

A lasting legacy

After various financial challenges and ownership changes, Rosen played a central role in establishing Sega of America in the 1980s. He oversaw the launch of iconic consoles such as the Master System, the Mega Drive (Genesis in the United States), which would define a generation, and the Saturn. He retired in 1996, after more than forty years shaping the company.

As the first president of the Japan Amusement Association, which he co-founded in 1967, Rosen helped structure an emerging industry. His funeral took place on January 2 at Inglewood Park Cemetery.

David Rosen leaves behind an immense legacy. Generations of players who grew up with arcade machines and later Sega consoles owe much to this man, who saw the potential of electronic entertainment long before anyone else. His work will continue to inspire the industry for generations to come.