Can Sega make a comeback? Which company will come up with the key digital home electronic appliance of the future?

In a bid to stay in the running with Sony and Nintendo in the home video game market, video game maker Sega Enterprises Ltd. announced at a news conference in Tokyo Tuesday it will follow two key strategies: lower prices and online gaming.

Sega's salvo opens the second round of the game machine wars being waged by Sony, Nintendo and Sega, each of whom desperately seeks success in the market for different reasons.