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Sega co-founder Dave Rosen passes away at 95

Rosen's early efforts to import arcade amusements overseas would lead to the formation of Sega and the foundation of Japan's arcade scene.

TJ Denzer

January 5, 2026 7:42 AM

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Dave Rosen, a co-founder of Sega and widely credited with the popularization of the arcade business in Japan, has passed away at the age of 95. Rosen was a businessman and entrepreneur who made his name on importing arcade machines overseas. His work would eventually lead up to the formation of the company that now manages legendary IPs like Sonic the Hedgehog and the Like a Dragon/Yakuza series.

Rosen’s death was reported by his spokesman, Brad Callaway, as shared by RePlay Magazine. According to Callaway, Rosen passed away peacefully at his Los Angeles home on December 25, surrounded by friends and family. His company, Rosen Enterprises, began in 1950s post-WWII Japan as a business that dealt in art and did photography for ID cards. Eventually, Rosen saw an opportunity to bring coin-operated amusement machines to Japan and successfully acquired a trade license from the Japan Ministry of International Trade and Industry to begin importing these arcades to the Japanese mainland. The machines were immediately popular and successful, which allowed Rosen Enterprises to open up arcade all over Japan.

As the Japanese arcade scene started to balloon in popularity in the early 1960s, so too did other companies enter the game, and one in particular, Nihon Goraku Bussan, would seek to merge with Rosen Enterprises. That merger would create the beginnings of what we know of Sega as a video game and amusement company, as Rosen shared in a 1996 interview with Next Generation:

By the time that interview took place, there were Sega arcades across the entirety of Japan. That business would take a massive hit in the early 2020s when the international COVID pandemic severely damaged many entertainment markets, forcing Sega Sammy to sell off many of its arcade assets.

That said, Sega is still alive and well, producing and publishing popular games today, and it arguably all started with Rosen’s desire to bring arcades over to Japan. Shacknews sends condolences to Dave Rosen’s friends and family.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on BlueSky @JohnnyChugs.