The video game industry is in mourning. Hideki Sato, the legendary engineer behind all of Sega’s home consoles, passed away on February 13, 2026, at the age of 77. Less than two months after the death of David Rosen, Sega’s co-founder, another pillar of the company’s history has fallen. If Rosen built the Sega empire from arcade machines, Sato designed every console that made its way into our living rooms.

A Generation of Sega Fades Away

On December 25, 2025, we lost David Rosen, who co-founded Sega in 1965. Barely six weeks later, Hideki Sato also passed away. These two men embodied complementary sides of Sega: Rosen, the visionary entrepreneur who structured the arcade industry, and Sato, the engineer who transformed that expertise into groundbreaking home consoles.

From the Arcade to the Living Room

Joining Sega in 1971, Sato first worked on arcade machines. In 1989, after being promoted to head of the R&D department, he was given a mission: defeat Nintendo. “Sega’s console development was always influenced by our arcade development,” he explained. This philosophy led to the creation of the Mega Drive, an elegant black console with gold lettering that established Sega as a global force, selling over 30 million units.

Innovation Until the End

Sato continued with the Saturn and later the Dreamcast, Sega’s swan song in the hardware business. Although a commercial failure, the Dreamcast remains iconic for its innovations: the VMU, a built-in modem, and the first successful console MMO. “The keyword during development was ‘play and communication,’” Sato explained, carrying on the social vision of gaming that Rosen had initiated in his Japanese arcade halls.

A Shared Legacy

From 2001 to 2003, Sato served as Sega’s president during its difficult transition to becoming a third-party publisher. Where Rosen built the empire, Sato forged its weapons. If we are here together enjoying retrogaming today — whether on original hardware or through emulation — it is in part thanks to them.

Sources: Time Extension, Kotaku, PC Gamer