David Rosen, who recently passed away at 95, was a key figure in the arcade game industry. As the co-founder of Sega, he helped shape the video game landscape in Japan and beyond. He played a vital role in creating Sega of America and the iconic Mega Drive console in the late ’80s.
Rosen’s journey began as a U.S. Air Force pilot during the Korean War. After the war, he moved to Japan and saw an opportunity in the country’s booming economy. In 1954, he started Rosen Enterprises, initially importing photo booths. He quickly expanded into pinball machines and eventually merged with Nihon Goraku Bussan to create Sega.
For 15 years, Sega led the way in arcade games, moving from imports to original designs. Notable titles like Periscope and Killer Shark emerged during this era. By setting up its own arcades, Sega had control over how its games were presented, significantly impacting its popularity.
Rosen had a talent for spotting talent. In 1979, he hired Hayao Nakayama, who later became president of Sega Japan. Nakayama’s sharp business sense helped Sega transition from a competitor to an industry leader during the ’80s. The company released groundbreaking arcade games like Outrun and Virtua Fighter, transforming arcades into trendy social hubs.
In the late ’70s, Rosen aimed for the home gaming market. Competing with Nintendo, which had revived interest in home consoles, Sega struggled initially. Their first console faced challenges, but by 1986, the Master System hit the market. While less successful in the U.S., it found a strong following in Europe and South America, appealing to a more mature audience with titles like Golden Axe.
When it came time to launch the Mega Drive, Rosen pushed for a name change to Genesis in the U.S. to emphasize a fresh start. With Michael Katz on board, Sega marketed the Genesis to teens, featuring ads with catchy slogans like “Genesis does what Nintendon’t.” This shift in focus helped reposition Sega in the console wars.
Rosen remained influential in various roles at Sega until 1996. Although the rise of the PlayStation challenged Sega’s home console efforts, the company continued to dominate the arcade scene.
Rosen’s legacy isn’t just in the games but in the relationships he built. In a 2013 interview, he reflected on his time in Japan and the friendships that shaped his career. He fondly recalled how, even in Los Angeles, people would cheer “Sega!” when they saw him.
As video gaming continues to evolve, the impact of pioneers like Rosen remains evident. His innovative spirit and ability to adapt helped lay the groundwork for the gaming industry we know today.
For further insights into the evolution of gaming, consider exploring resources like the Entertainment Software Association’s report on industry trends and statistics.

