The passing of David Rosen, a true pioneer and co-founder of Sega, leaves an indelible mark on the gaming industry. At 95, Rosen's impact on the world of arcade games is unparalleled. His journey, from a US Air Force pilot stationed in Japan to becoming a pivotal figure in the birth and growth of the video game industry, is nothing short of remarkable.
Rosen's story begins in the 1950s, when he noticed an increasing demand for ID cards among Japanese civilians. This led him to import photo booths from the US, which sparked his interest in the coin-operated machine business. From there, he expanded his ventures to include pinball tables and other arcade machines, setting up shop in various public spaces. In 1965, he merged his company with Nihon Goraku Bussan, creating Sega, a name that would become synonymous with innovation in the arcade sector.
For over a decade, Sega pushed the boundaries of arcade gaming, transitioning from importing games to designing their own. They moved beyond jukeboxes and pinball, creating electromechanical arcade games like the iconic Periscope and Killer Shark, which made a brief appearance in the movie Jaws. Sega also established its own arcades, giving them complete control over their operations.
Rosen's talent lay in his ability to recognize and recruit individuals who understood the future of gaming. In 1979, he spotted Hayao Nakayama, a rising star in the industry, and brought him on board by acquiring his company, Esco Trading. Nakayama went on to become the president of Sega Japan during its golden era, from 1983 to 1998.
During this time, Sega rose from a competitor to an industry leader, alongside other arcade giants like Namco, Capcom, Taito, and Konami. Their sleek and stylish coin-ops of the 1980s, such as Outrun, Space Harrier, and AfterBurner, transformed arcades from geeky hangouts to cool, aspirational destinations. The 1990s titles Virtua Racing and Virtua Fighter solidified Sega's reputation as a technological powerhouse.
But here's where it gets controversial... Rosen also had his sights set on the home TV game market, where he faced a formidable rival: Nintendo. Dominating with their Color TV-Game console and later the Nintendo Entertainment System, Nintendo posed a significant challenge. When Rosen returned to the US in the early 1980s, he was determined to take on Nintendo and claim a piece of the global console market.
"Nintendo revived the home console market after the Atari collapse of 1983," Rosen explained. "We wanted to create a competitive device, but our initial attempt fell short. It wasn't until 1986 that we introduced the Master System..."
While the Master System struggled in the US, it found massive success in Europe and South America. Rosen identified a niche, targeting teenagers with games like Golden Axe and Shinobi, which contrasted with Nintendo's focus on family-friendly entertainment. When it came to launching the Sega Mega Drive in Japan in 1988, Rosen insisted on rebranding it as the Genesis for the US market, emphasizing a fresh start and a more mature approach.
Rosen brought in Michael Katz, an experienced executive from Mattel and Coleco, to help launch the Genesis. "We were up against the clock," Rosen said. "Michael had valuable experience from Coleco, and he knew the industry players. I believed he could help launch the product and bring structure to the company, which he did."
Katz's marketing strategy for the Genesis targeted teenagers, not children, using edgy TV ads that combined video game visuals, rock music, and the iconic catchphrase: "Genesis does what Nintendon't." This approach, coupled with Tom Kalinske's leadership as CEO of Sega of America, resulted in a series of famous ads that ended with the unforgettable scream, "Sega!"
Rosen remained actively involved in Sega until his retirement in 1996. Although Sega's home console business faced challenges with the rise of the Sony PlayStation, their arcade supremacy continued throughout the decade. In 2013, while writing Sega Mega Drive Collected Works, I had the privilege of speaking with Rosen, a lifelong Sega fan. Our hour-long conversation was a career highlight, as he shared fond memories of his time in Japan, his colleagues, and his journey through the gaming industry. He recounted with delight how strangers in his hometown of Los Angeles would still shout "Sega!" as he walked down the street.
David Rosen's legacy in the gaming industry is a testament to his vision, innovation, and ability to spot talent. His impact on Sega and the arcade game industry will forever be remembered.
