Key Facts
- ✓ David Rosen, co-founder of Sega, has died at the age of 86.
- ✓ He founded Rosen Enterprises in 1954, which initially manufactured photo booths in Japan.
- ✓ In 1965, Rosen merged his company with Gulf & Western to create Sega Enterprises, serving as its CEO.
- ✓ He was a pioneer in the arcade industry, introducing the first 25-cent game (Periscope) and a revolutionary magnetic card system.
Quick Summary
David Rosen, the visionary entrepreneur who co-founded the legendary video game company Sega, has passed away at the age of 86. His death marks the end of an era for the gaming industry, which he helped shape through decades of innovation.
Rosen's journey began in Japan, where he founded a successful photo booth business that eventually evolved into a major amusement machine manufacturer. His merger with Gulf & Western in 1965 created Sega Enterprises, with Rosen at the helm as CEO. He is credited with transforming Sega from a niche player into a global powerhouse, pioneering technologies and game concepts that defined the arcade experience for millions.
The Early Years and Rosen Enterprises
David Rosen's entrepreneurial spirit was evident from a young age. In 1954, he founded Rosen Enterprises in Tokyo, Japan, after serving in the U.S. Air Force. The company initially focused on manufacturing and selling photo booths, which were a novelty in post-war Japan.
His photo booth business was a resounding success, quickly expanding to over 200 locations across the country. This initial venture provided the capital and business acumen necessary for his next, more ambitious project. Rosen Enterprises soon began manufacturing its own amusement machines, competing with established Japanese manufacturers.
By the early 1960s, Rosen Enterprises had become a significant player in the Japanese amusement industry. The company's growth was fueled by Rosen's unique ability to understand both American and Japanese business cultures, a skill that would prove crucial in his later endeavors.
The Birth of Sega Enterprises
In 1965Gulf & Western. This merger created Sega Enterprises, a name derived from 'Service Games,' a previous company that had operated coin-operated amusement machines on U.S. military bases in Japan.
Following the merger, David Rosen was appointed as the CEO of the newly formed Sega Enterprises. He retained this position for many years, guiding the company through periods of significant growth and transformation. His leadership was defined by a relentless pursuit of innovation and quality in game design and hardware.
Rosen's vision for Sega was to create unique, high-quality amusement experiences that could not be easily replicated. He pushed his engineering teams to develop groundbreaking technology, setting Sega apart from its competitors in the rapidly growing arcade market.
Innovations and Arcade Dominance 🕹️
Under David Rosen's leadership, Sega pioneered several technological breakthroughs that revolutionized the arcade industry. One of the company's earliest major successes was the game Periscope, released in 1966. This game used a unique setup of mirrors and lights to simulate a submarine attack, and it was the first arcade game to cost 25 cents per play, doubling the standard price at the time.
Rosen's most significant innovation came in the 1970s with the development of a magnetic card system for arcade machines. This system allowed operators to easily change the games on their machines by swapping out magnetic cards, drastically reducing the cost and logistics of maintaining a diverse game library. This system was a massive commercial success and was licensed to other manufacturers.
Some of the iconic games and systems developed during this era included:
- Periscope (1966) - The first 25-cent arcade game
- Magnetic Card System - Revolutionized game distribution
- Zaxxon (1982) - An isometric shooter that was a major hit
- Sega Master System - The company's entry into the home console market
Legacy and Impact on the Gaming World
David Rosen's influence on the video game industry is immeasurable. He transformed Sega from a small photo booth company into a global entertainment giant. His business philosophy centered on creating high-quality, innovative products that pushed the boundaries of technology and entertainment.
After leaving his day-to-day role at Sega, Rosen remained a respected figure in the industry. His work laid the foundation for Sega's golden age in the late 1980s and early 1990s, a period that saw the release of the Sega Genesis and iconic franchises like Sonic the Hedgehog.
The passing of David Rosen is a significant loss for the gaming community. He is remembered not only as a brilliant businessman but also as a true innovator who had a profound passion for creating fun and engaging experiences for players around the world.




