Sega is a long-running Japanese company responsible for arcade hits like Space Harrier, home consoles like the Dreamcast, and franchises such as Sonic the Hedgehog.
Sega was originally founded all the way back in 1940, before video games were even around. Martin Bromely, Irving Bromberg, and James Humpert started the company in Honolulu, Hawaii. They created the company to make coin-op games for U.S. military servicemen, who had all this spare time on military bases. Originally the company was named Standard Games, However that was quickly changed to Service Games, and in 1951 Bromely got the idea to move the company to Tokyo, Japan. In May of 1952, a new business name was registered: "Service Games of Japan".
Two years go by, it's 1954, and another American businessman, David Rosen, is starting up a company in Japan called Rosen Enterprises Inc. The company was originally created for exporting art, but during Rosen's time in Japan, he noticed a popular phenomenon. People in Japan were really into coin-op instant photo booths! The company changed their ways and started importing and exporting various coin-op games.
In 1965, Rosen Enterprises and Service Games merged together, Rosen's name was dropped completely, and Service Games shortened their name to only the first two letters, "SE" and "GA". The new corporation was named Sega Enterprises, and it was only the beginning for this soon-to-be-huge company. The first game released by Sega Enterprises was another coin-op game called Periscope. The game was a submarine simulator, and was an international hit.
Gulf Western bought Sega Enterprises in 1969, but allowed Rosen to stay the CEO of the company. Rosen led the company to prosper even further, creating more and more coin-op games.