# Gary Stern: 40 Years of Stern Pinball **Source:** Stern Pinball **Type:** video **Published:** 2026-06-12 **Duration:** 6m 43s **Beat:** Pinball **URL:** https://www.youtube.com/watch?v=YJNe00zNnFg --- ## Analysis Gary Stern, founder and chairman of Stern Pinball, reflects on 40 years of company history spanning Data East Pinball (1986), Sega Pinball (1994), and the modern Stern Pinball era (1999-present). He discusses the company's survival through industry consolidation, key partnerships (Dave Peterson as 50/50 partner, Seth Davis as CEO, George Gomez as chief creative officer), evolution of pinball design to incorporate video and deeper rule sets, and strategic innovations like Insider Connected technology. Stern emphasizes the company's role in keeping commercial pinball manufacturing alive when competitors like Williams, Gottlieb, and Bally exited. ### Key Claims - [HIGH] Stern Pinball is the same company that has operated continuously for 40 years under three names: Data East Pinball (1986), Sega Pinball (1994), and Stern Pinball (1999-present) — _Gary Stern, direct statement about company history_ - [HIGH] Data East Pinball was co-founded by Gary Stern, Joe Kaminkow, and Shelly Sachs in 1986 — _Gary Stern, explicit statement of founders_ - [HIGH] The company operates a 225,000 square foot manufacturing facility and performs extensive in-house woodworking — _Gary Stern, description of current operations_ - [HIGH] Dave Peterson became a partner in 2008-2009 during the recession and now controls 50% of the company while Gary Stern controls 50% — _Gary Stern, statement about partnership structure_ - [MEDIUM] Stern Pinball has over half a million Insider Connected players — _Gary Stern, quantitative claim about platform adoption_ - [HIGH] Insider Connected is described as 'probably the greatest innovation' in modern pinball — _Gary Stern, strategic assessment of company innovation_ - [HIGH] Seth Davis, the current CEO, has approximately 15 years of background in games and streaming at Disney — _Gary Stern, biographical statement about CEO credentials_ - [HIGH] George Gomez initially worked as a consultant designer before becoming chief creative officer and building the design studio — _Gary Stern, description of Gomez's role evolution_ ### Notable Quotes > "Forty years ago, we started this company. We started as Deity East Pinball, same company." > — **Gary Stern**, early > _Core framing of Stern Pinball's 40-year continuity claim, establishing historical timeline_ > "Someone said why do you need another pinball? Well, we must have needed it because Bally's gone, Williams is gone, Gottlieb's gone. We're here." > — **Gary Stern**, mid > _Strategic assertion of Stern's competitive survival advantage over defunct competitors, a key industry narrative_ > "Dave is probably the best thing that's happened to me in my business career. Excellent thinking outside of our pinball box but loving what we're doing." > — **Gary Stern**, mid > _Personal endorsement of partnership structure and Dave Peterson's business impact_ > "The greatest innovation probably is Insider Connected. A pinball machine today, you know, great. Without connectivity, ten years from now, five years from now, it's going to be a box on four legs." > — **Gary Stern**, mid-late > _Strategic positioning of connected play as essential to pinball's future viability_ > "If we hadn't kept this company going and we built this company, I don't believe there'd be pinball because it wouldn't be a commercial business. Not just game operating, but a real manufacturing business." > — **Gary Stern**, late > _Strong claim about Stern's role as preserving commercial pinball manufacturing post-industry consolidation_ > "Company is Stern, not named after me. It's named after my father. I'm very proud of that. I think he would be proud of it too." > — **Gary Stern**, final > _Personal statement connecting company legacy to family heritage and honoring father Sam Stern_ ### Entities | Name | Type | Context | |------|------|---------| | Gary Stern | person | Founder and chairman of Stern Pinball; co-founded Data East Pinball in 1986 with Joe Kamenko and Shelly Sachs; controls 50% of Stern Pinball as of 2008-2009 partnership with Dave Peterson; stepped down as CEO due to age constraints; son of Sam Stern (game operator, died 1984) | | Stern Pinball | company | Modern pinball machine manufacturer; founded as Data East Pinball (1986); became Sega Pinball (1994); rebranded to Stern Pinball (1999); operates 225,000 sq ft manufacturing facility; publicly positions itself as preserving commercial pinball manufacturing | | Dave Peterson | person | Joined Stern Pinball in 2008-2009 during recession; became 50/50 partner with Gary Stern; described as bringing 'excellent thinking outside of our pinball box' | | Seth Davis | person | Current CEO of Stern Pinball; hired by Gary Stern to replace him; background includes approximately 15 years at Disney in games and streaming; described as a gamer who understands pop culture | | George Gomez | person | Chief creative officer of Stern Pinball; initially worked as consultant designer; built design studio at Stern; described as leading force in company's design direction | | Joe Kaminkow | person | Co-founder of Data East Pinball in 1986 with Gary Stern and Shelly Sachs | | Shelly Sachs | person | Co-founder of Data East Pinball in 1986; worked with Gary Stern since 1979, before company founding; described as having 'great memory for this company' | | Sam Stern | person | Gary Stern's father; game operator; died in 1984; Stern Pinball company is named after him; Gary Stern frames company legacy as continuing his father's footsteps | | Data East Pinball | company | Original name of Stern Pinball, founded 1986; investor was Data East; discontinued name in 1994 when Sega acquired it | | Sega Pinball | company | Name of company from 1994 (when Sega acquired Data East Pinball) to 1999; Gary Stern's group repurchased from Sega in 1999 and renamed to Stern Pinball | | Insider Connected | product | Connectivity platform for Stern Pinball machines; described by Gary Stern as greatest innovation in modern pinball; over half a million players; supports achievements, gameplay tracking, and community engagement | | Stern Army | organization | Stern Pinball community initiative; enthusiasts worldwide organizing leagues and events at least monthly in their locations; also involved in launch parties for new games | | Stern Pro Circuit | organization | Tournament organization overseen by Stern Pinball; hosts worldwide competitions culminating in annual championship | | Williams | company | Historical competitor pinball manufacturer; referenced as no longer in business; Stern Pinball positions itself as surviving while Williams exited | | Gottlieb | company | Historical competitor pinball manufacturer; referenced as no longer in business; Stern Pinball positions itself as surviving while Gottlieb exited | | Bally | company | Historical competitor pinball manufacturer; referenced as no longer in business; Stern Pinball positions itself as surviving while Bally exited | ### Signals - **[historical_signal]** Gary Stern recounts Data East Pinball founding in 1986 as basement operation started with Atari 2600 computer and propane heater in townhouse garden level, establishing origin myth for Stern Pinball's 40-year continuity narrative (confidence: high) — Started this in the garden level of my townhouse, that's a basement... moved to two rooms in the Regal building over on Peterson Avenue in Chicago - **[business_signal]** Dave Peterson partnership formalized in 2008-2009 recession creating 50/50 ownership structure with Gary Stern; positioned as strategic inflection point enabling company growth and strategic direction (confidence: high) — In the recession 2008-2009, Dave Peterson joined us and ultimately became a partner where he controls half and I control half - **[business_signal]** Gary Stern transitioned from CEO to chairman role, hiring Seth Davis (former Disney games/streaming executive) as CEO to enable continued company growth and modernization (confidence: high) — A number of years ago, I said, you really can't grow this company and finance it with a 72-year-old CEO... found Seth Davis who now is our CEO - **[product_strategy]** Stern Pinball's design philosophy explicitly balances casual players with complex rule depth and game theory; incorporates video displays and connected features while maintaining mechanical action core (confidence: high) — We have physical state change, ball and bat game, things for the casual player... modes and deeper rule sets... real game theory in the pinball machines today - **[technology_signal]** Insider Connected platform has achieved over half a million players; positioned as essential innovation distinguishing Stern from competitors and future-proofing machines against obsolescence (confidence: medium) — We have over half a million Insider Connected players... Without connectivity, ten years from now, five years from now, it's going to be a box on four legs - **[manufacturing_signal]** Stern operates 225,000 sq ft modern manufacturing facility with integrated woodworking operations; tours available to All Access members with 30-40 playable games in lobby for employee/visitor engagement (confidence: high) — We have 225,000 square feet... part of that is because we do a lot of our own woodworking now... 30, 40 games out there that people, when they come on a tour, can play - **[community_signal]** Stern Army community initiative creates monthly league/event structure worldwide; Stern Pro Circuit enables tournament infrastructure; positions Stern as enabling sport-like competitive structure around pinball (confidence: high) — Stern Army is people enthusiasts all over the world that start a league there or an event at least once a month... Stern Pro Circuit... tournaments all over the world and we finish that with an annual championship - **[industry_signal]** Gary Stern explicitly credits Stern's survival to strategic decisions while competitors Williams, Gottlieb, and Bally exited market; positions Stern as sole large-scale manufacturer preserving commercial pinball manufacturing (confidence: high) — Someone said why do you need another pinball? Well, we must have needed it because Bally's gone, Williams is gone, Gottlieb's gone. We're here - **[design_philosophy]** Stern's design approach explicitly acknowledges age-diversity in playerbase; Gary Stern (describing himself as 'old and slow') notes design includes both casual/accessibility features and deep competitive modes for 'gamers' (confidence: high) — things for the casual player, things for somebody like me who's old and slow. But we have modes and deeper rule sets - **[personnel_signal]** George Gomez established as chief creative officer and design studio lead; transitioned from consultant to permanent leadership role; described as foundational to company's design capability (confidence: high) — our chief creative officer, George Gomez, who designed first as a consultant for us... He has built a design studio, certainly a leading force among what we do - **[business_signal]** Stern explicitly claims unique role as manufacturer preventing pinball's commercial extinction; frames survival as critical preservation of pinball as manufacturing business rather than just arcade operation (confidence: high) — If we hadn't kept this company going and we built this company, I don't believe there'd be pinball because it wouldn't be a commercial business - **[operational_signal]** Stern Pinball facility includes public arcade with 30-40 playable games; employees have access to play equipment; described as part of company culture and visitor/community engagement strategy (confidence: high) — We have out in the lobby 30, 40 games out there that people, when they come on a tour, can play. They enjoy it. Our employees enjoy it. --- ## Transcript We wanted people to know that we were an American pinball company even though it was Dade East. So that's why we have the map of America with a DE flag coming out of it. Pinball capital of the world, a misspelled capital. Because we were a Japanese company. We just I'm Gary Stern. I'm the founder and chairman of Stern Pinball. Forty years ago, we started this company. We started as Deity East Pinball, same company. Our investor was Deity East, and that was in 1986. We sold that company from Dade East to its shareholder, Sega, in 1994. We changed its name to Sega Pinball. In 1999, my group bought the company and we changed its name again to Stern Pinball. But it's the same company all 40 years. It was originally started by Joe Kamenko and myself and Shelly Sachs. This is Shelly. She was with me since even before this company, since 1979. She is a great memory for this company and one of its founders. Started this in the garden level of my townhouse, that's a basement. And we put together a business plan. I did it with a Atari 2600 computer not much of a computer We moved to two rooms in the Regal building over on Peterson Avenue in Chicago and that was in late 1986 We took turns on who was going to go get the gas for the propane heater to keep us warm Everybody took home garbage every night Certainly we started it because we needed a job and I always kid about that But we love pinball Valley existed Gottlieb existed Williams existed Someone said why do you need another pinball Well, we must have needed it because Bally's gone, Williams is gone, Gottlieb's gone. We're here and we're loving what we're doing and it's a good thing that we started it or we would have this major part of the pinball business. In the recession 2008-2009, Dave Peterson joined us and ultimately became a partner where he controls half and I control half. Dave is probably the best thing that's happened to me in my business career. Excellent thinking outside of our pinball box but loving what we're doing. So here we are, same company growing along. You all know we've added quite a few people. You know some of our great designers and of course our chief creative officer, George Gomez, who designed first as a consultant for us. I feel like he's been here forever. He has built a design studio, certainly a leading force among what we do. A number of years ago, I said, you really can't grow this company and finance it with a 72-year-old CEO. I was CEO at the time. That when we looked for a CEO and found Seth Davis who now is our CEO And Seth background was in a decade and a half at Disney in games and in streaming He knows games. He's a gamer. He knows pop culture. Hello, Seth. Hello. It's very nice to see you. Today, people with games in the home and people on the street, they're gamers. They grew up playing games. The pinball design has grown and changed. It's still mechanical action pinball. The game is still under the glass and you have a display that has a lot of video that's showing what you're doing. We have physical state change, ball and bat game, things for the casual player, things for somebody like me who's old and slow. But we have modes and deeper rule sets and what have you for the gamer in it. Because there is real game theory in the pinball machines today. It has definitely evolved into a much more sophisticated game. The greatest innovation probably is Insider Connected. A pinball machine today, you know, great. Without connectivity, ten years from now, five years from now, it's going to be a box on four legs. Everything is connected and our pinball is connected and we are continuing to develop more and more with Insider Connected. And it's great for game play, achievements and what have you. We got over half a million Insider Connected players. We involved in a lot of different community events We have Stern Army And the Stern Army is people enthusiasts all over the world that start a league there or an event at least once a month in that location And we also do launch parties when we come out with a new game There are competitions there are pinball groups and clubs there are leagues This is a sport. We have the Stern Pro Circuit. There are tournaments all over the world and we finish that with an annual championship competition. So we've developed, we've grown, we moved into this building. We have 225,000 square feet we've grown, but part of that is because we do a lot of our own woodworking now. This factory is fascinating. It's the most modern pinball factory I've ever been, but it is a great factory to tour. All Access members get a tour every year. We have out in the lobby 30, 40 games out there that people, when they come on a tour, can play. They enjoy it. We enjoy it. Our employees enjoy it. Come on in, folks. If we hadn't kept this company going and we built this company, I don't believe there'd be pinball because it wouldn't be a commercial business. Not just game operating, but a real manufacturing business. Other people have followed us. That's great that nobody is at our scale. My father started as a game operator. He died in 84. We started the company in 86, so he didn't get to see this company. But I got to follow in his footsteps, continue his legacy, if you would. Company is Stern, not named after me. It's named after my father. I'm very proud of that. I think he would be proud of it too. _(Acquisition: youtube_groq_whisper, Enrichment: v5)_ --- *Exported from Journalist Tool on 2026-06-15 | Item ID: 163784e4-cb50-4022-ae71-37ce8bb384a8*