David Rosen, Sega Co-Founder, Dies at 90

david Rosen, Sega Pioneer and Korean War Veteran, Dies at 95

David Rosen, a former US Air Force pilot who played a pivotal role in establishing the global video game industry, particularly through his co-founding and leadership of Sega, passed away on December 25, 2025, at the age of 95. Rosen’s journey from the skies of the Korean War too the arcades and living rooms of millions is a testament to his adaptability and vision.

Born in Brooklyn, New York, on January 22, 1930, Rosen’s path to becoming a gaming titan was far from predetermined. After serving as a pilot during the Korean War, he relocated to Japan in the post-conflict economic recovery period. There, he founded Rosen Enterprises in 1954, initially focusing on artistic and identity photography. The business quickly flourished, leading him to import and install photo booths throughout Japan, generating significant profits.

Did you know? — Rosen Enterprises initially focused on photo booths, capitalizing on post-war Japan’s growing demand for personal photography and identification services.

Rosen’s entrepreneurial spirit continued to expand. He began offering “coin operated machines†— including pinball tables and billiards — to businesses like shops,cinemas,and restaurants. In 1965, Rosen Enterprises merged with Nihon Goraku Bussan, a company specializing in jukeboxes and arcade games, known as “service games†in English. This union birthed a new name: Sega, a contraction of “service games.â€

Pro tip — The name “Sega” is derived from “service games,” reflecting the company’s early focus on coin-operated entertainment in Japan.

Sega’s early innovation came with the 1966 release of Periscope, an arcade game simulating submarine warfare. It’s success was so immediate that Rosen increased the play cost from 10 cents to 25 cents. He continued to contribute to arcade game development, including titles like Killer Shark, Five Star Q, Soccer, and Night Flight, even after selling Sega Enterprises to Gulf+Western in 1969. During this period, Rosen recognized the potential of young talent like Hayao Nakayama, then director of Esco Trading.

Reader question — Rosen’s early arcade successes, like Periscope, demonstrated a keen understanding of market demand and willingness to adjust pricing for profitability.

Under American ownership, Sega achieved a significant milestone with its initial public offering (IPO) in the United States, and the first Sega Centers began appearing across the country in the 1970s. When Gulf+Western faced financial difficulties in 1983, Rosen, alongside Nakayama, successfully purchased the Japanese branch of Sega. Nakayama afterward became president of Sega Japan until 1998, leading the company to dominance in the arcade industry, surpassing competitors like Namco, Capcom, and Konami. Under Nakayama’s leadership, iconic arcade titles such as Outrun, Space Harrier, and Afterburner were created.

Rosen then turned his attention to Sega of America, closely observing the emergence of Nintendo’s Color TV game — one of the first home video game consoles. Recognizing the potential of this new market, Sega released its first console, the SG-1000, in 1983. While it couldn’t compete with Nintendo’s Famicom released the same year, Sega found success with the Master System in 1986. The Master System differentiated itself by targeting a more mature audience with games like Golden Axe and Shinobi, offering a contrast to Nintendo’s family-focused approach. The subsequent releases of the Mega Drive,Game Gear,and Saturn consoles further cemented Sega’s place in gaming history,introducing beloved characters like Sonic and Alex Kidd.

Rosen remained actively involved with Sega until his retirement in 1996. His funeral was held on January 2, 2026, at Inglewood Park Cemetery in California. His legacy extends far beyond the flashing lights and digital worlds he helped create; he was a true pioneer who shaped the entertainment landscape for generations.