Englishman Davis turned professional back in 1978 and went on to become one of the greatest players of all time.
Davis, nicknamed 'The Nugget', won all six of his world titles in the 1980s and claimed 28 ranking crowns in his illustrious career.
He failed to qualify for the World Championship after losing to Fergal O'Brien this year and announced his decision to call time on his career at The Crucible on Sunday.
Davis told BBC Sport: "The Fergal O'Brien match was my last and I told [World Snooker chairman] Barry Hearn it was time to call it a day. My father passed away recently and it was natural time to stop playing.
"I should have done it ages ago, I played a bit for my father. I am delighted to have such a great time in the game, I was lucky to have a hobby as my profession.
"It has been a fantastic. The game will move on to other places but I feel like the grandfather of the sport."
Only Stephen Hendry has won more ranking titles than former world number one Davis, who also triumphed in 53 non-ranking events.