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Rosen then orchestrated a merger between Rosen Enterprises and Nihon Goraku Bussan, becoming chief executive of the new company, Sega Enterprises, which derived its name from Service Games.Within a year, Sega began the transition from importer to manufacturer, with the release of the submarine simulator game, Periscope.In 1969, Rosen sold Sega to American conglomerate Gulf and Western Industries, although he remained as CEO following the sale.Under Rosen's leadership, Sega continued to grow and prosper, and in 1974, Gulf and Western made Sega Enterprises, ltd. Other notable games from Sega during this period are Head On (1979), Monaco GP (1979), Carnival (1980), Turbo (1981), Space Fury (1981), Astro Blaster (1981), and Pengo (1982).This company eventually became Rosen Enterprises, and in 1957, began importing coin-operated games to Japan. A few days later, on June 3, two new companies were established to take over its business activities, Nihon Goraku Bussan and Nihon Kikai Seizo.By 1965, Rosen Enterprises grew to a chain of over 200 arcades.In the mid-1980s, Sega released Hang-On and After Burner, arcade games that make use of hydraulic cabinet functionality and force feedback control.Sega also released the 360-degree rotating machine R-360.

When Nintendo launched its Super Nintendo Entertainment System in North America in August 1991, Sega changed its slogan to "Welcome to the next level." The same year, Sega of America's leadership passed from Katz to Tom Kalinske, who further escalated the "console war" that was developing.

Nakayama became the new CEO of Sega, Robert Deith chairman of the board, and Rosen became head of its subsidiary in the United States.

In 1984, the multibillion-dollar Japanese conglomerate CSK bought Sega, renamed it to Sega Enterprises, headquartered it in Japan, and two years later, shares of its stock were being traded on the Tokyo Stock Exchange.

For arcade system boards, Sega released the System series and the Super Scaler series.

UFO Catcher was introduced in 1985 and is Japan's most commonly installed claw crane game.

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