SEGA Co-Founder David Rosen Passes Away at 95, Leaving a Lasting Legacy on the Video Game Industry

The video game industry has lost one of its foundational figures. David Rosen, a co-founder of SEGA and a driving force behind the company’s early identity, passed away on December 25, 2025, at the age of 95.

SEGA acknowledged Rosen’s passing with a public tribute on their social media accounts, honoring him as a “true pioneer” whose influence reaches back to the very beginnings of the modern games industry. The company expressed its condolences to his family and loved ones, stating that his contributions to SEGA would never be forgotten.

Keen-eyed readers may have noticed that in the picture posted by SEGA, David is holding a picture of Sonic with the message:

To David:

None of this would have been possible without Periscope!

In this context, Periscope refers to SEGA’s 1966 electromechanical arcade game Periscope, one of the company’s earliest global successes and a landmark title in its history. Developed under Rosen’s leadership shortly after the formation of SEGA, Periscope was a submarine simulation game that became an international hit, particularly in Europe and the United States.

The success of Periscope was transformative for the young company. It helped establish SEGA as a major player in the coin-operated entertainment industry, generated the revenue and confidence needed for further expansion, and laid the groundwork for SEGA’s long-term presence in arcades and games. In many ways, Periscope represents the moment SEGA proved it could succeed on a global stage.

In a follow-up tweet, Kazuyuki Hoshino, Creative Director for Sonic the Hedgehog and one of the original members of Sonic Team, explained that he personally signed and presented the illustration on behalf of the team.

Rosen’s story is inseparable from SEGA’s origins. After joining the U.S. Air Force at 18, he was stationed in Japan during the Korean War. Following his service, he chose to remain in the country, founding Rosen Enterprises in 1954. What began as a business focused on photography and artwork soon evolved when Rosen recognized the growing potential of coin-operated entertainment in the late 1950s.

That shift proved transformative. Rosen Enterprises later merged with Nihon Goraku Bussan, forming what would become SEGA, with Rosen serving as CEO and managing director. Under his leadership, the company flourished during the golden age of arcades, producing and distributing pinball machines, jukeboxes, and other amusement devices at a time when coin-op entertainment was rapidly expanding worldwide.

As the industry changed in the 1980s and home consoles began to challenge arcades, SEGA adapted once again. The company entered the home market with hardware like the Master System, laying the groundwork for future success. While Rosen was no longer involved in day-to-day creative decisions by the time Sonic the Hedgehog emerged, his leadership had already built the foundation that allowed SEGA to take bold risks in a rapidly evolving industry.

Rosen remained influential within the company into the 1990s, playing a key role in establishing Sega of America and later serving as its chairman. He retired in 1996 after stepping down as president of Sega of Japan, bringing to a close a career that spanned nearly four decades with the company.

Today, SEGA’s legacy stretches far beyond arcades, from console history to global entertainment franchises. Sonic’s rise from video game icon to film star is part of that legacy, and it is one Rosen lived long enough to witness. His impact is felt not only in SEGA’s history, but in the broader shape of the video game industry itself.

David Rosen helped lay the groundwork for everything SEGA would become. His passing marks the loss of a true pioneer, but his legacy lives on every time the SEGA logo appears on screen and Sonic dashes forward into the future.