Sega co-founder David Rosen passed away on Christmas Day — 95-year-old former U.S. airman helped set up Sega after his service ended in Japan

Sega logo
(Image credit: Getty / tupunegato)

David Rosen, one of the co-founders of Sega, passed away on Christmas Day. His funeral took place on January 2 at Inglewood Park Cemetery in California, according to RePlay Magazine. Rosen founded Sega after staying in Japan after he completed his Air Force service in the Far East.

Most will know Sega as a “Japanese video game company,” as per the Wikipedia page dedicated to the company, so it might come as a surprise that ‘Sega’ isn’t a Japanese word but a portmanteau of ‘Service Games.’

Sega history

Before video games (Image credit: Rodw)

As mentioned in the intro, Rosen was a U.S. airman. He was stationed in Japan from 1948 to 1952 and saw service in the Korean War. Instead of returning to his hometown, New York, or even the USA, after the war, Rosen decided to stay in Japan and start a business. His early dealings in the recovering post-war nation were focused on bringing Japanese art to the American market and operating a chain of photo studios in Japan.

By the late 1950s, Rosen began to see an increase in disposable income among the Japanese, so he thought it was a good idea to import coin-operated amusement machines from the U.S. Despite 200% import fees on these machines, the bet paid off handsomely, with the machines being paid off within two months.

Sega Enterprises Ltd was formed when Nihon Goraku Bussan, founded in Hawaii by Martin Bromley and Richard Stewart and operating in Japan under the name Service Games, merged with Rosen Enterprises, which had by then become a major importer of coin‑op machines.

The first Sega-branded game is thought to be 1966’s Periscope. Of course, this was an era before video game arcade machines roamed the earth in search of quarters. Periscope is a “fun – suspense – excitement” shooting game amusement based on an electromechanical mechanism. The game was a huge hit and is attributed as a turning point for the industry, and a formative moment for Sega and developer Namco (then Nakamura Manufacturing).

As the new breed of electronic coin-op machines became available, Rosen was happy to jump on board with games like Pong from day one. Sega saw the opportunity to develop and produce its own arcade titles, beginning with the obviously pong-influenced Pong-Tron discrete logic arcade title in 1973.

Rosen took Sega back to the U.S. in person in 1986, when he agreed to form Sega of America in Los Angeles. At that helm, he stayed until retirement in 1996, overseeing the launch of all its major games console up to the Sega Saturn.

Rosen took Sega back to the U.S. in person in 1986, when he agreed to form Sega of America in Los Angeles. At that helm, he stayed until retirement in 1996, overseeing the launch of all its major games console up to the Sega Saturn.

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Mark Tyson
News Editor

Mark Tyson is a news editor at Tom's Hardware. He enjoys covering the full breadth of PC tech; from business and semiconductor design to products approaching the edge of reason.