It's no secret in electronics circles that Sega, the company that rose to the top of the video-game heap with the 16-bit Genesis game console, is in a lot of trouble. The causes of Sega's woes, a run of extremely ill-advised hardware launches, also are well known.

Sega's problems began in 1994, with the launch of the 32X. At the time, the entire video game industry was moving away from the 16-bit console and toward a new generation of 32- and 64-bit systems. Nintendo had announced "Project Reality," the product that eventually became the Nintendo 64 (N64); Sony announced its intention to launch a 32-bit console; and Sega already had announced its 32-bit Saturn. (Atari and 3DO also had launched new machines, but both systems already were running into trouble.)

Against this backdrop, and with a loyal public eagerly awaiting the release of the Saturn, Sega decided to create the 32X, a hardware add-on that could turn the 16-bit Genesis into a 32-bit console. They called it the "poor man's 32-bit machine" because it sold for a mere $149, $250 less than the expected price for the Saturn.

The idea was that the 32X would enable people who already owned a Genesis but could not afford a Saturn to enter the "next generation" of video games. The problem was that 32X was a no-win situation for Sega. If it performed as well as a Saturn, there would be no reason to purchase the more expensive unit. If it did not perform well, it would be a marketing failure.

Though several engineers claimed that the 32X could be adapted to run Saturn games, it never lived up to its potential. The 32X was a marketing nightmare; it began to die within a year and was eventually closed out at $19.

This was only the beginning of Sega's problems.

The company followed the 32X fiasco by completely botching the release of the Saturn. The press and many retailers were informed that the Saturn would be released on "Sega Saturn Saturday, Sept. 2nd." Then Sega released it in May, thinking the world would be delighted by the surprise.

What the surprise really did was allow the Saturn to be released without the fanfare that usually greets new game consoles. Plus, only a few select retailers received Saturns in May; the rest were told they would not receive the new console until September. Some alienated chains responded by dropping Sega products from their stores.

Saturn never got a foothold, and by 1997, the once mighty Sega had to admit that Nintendo and Sony controlled the market.

Now Sega is bracing for one last stand by making plans to abandon the Saturn and release a new super-powered console.

Rumors about the system are bouncing around the video game industry. The system's code name is Dural, the name of a metallic combatant in Virtua Fighter, Sega's flagship fighting game.

To date, Sega has not demonstrated the new system to the press, but it has been demonstrated to several game companies, and a little information has leaked out.

Apparently, Sega decided to pull out all the stops when it comes to power -- Dural has a 128-bit processor. Since the Sony PlayStation has a 32-bit processor and the N64 has a 64-bit processor, Dural would be twice as powerful as either of its direct competitors and far more powerful than personal computers, as well.

It is known that Dural does not have 3Dfx-based graphic architecture. Sega originally planned to use 3Dfx chips in its next system, then ended the relationship. Now Sega and 3Dfx are locked in an angry court battle.

Dural is rumored to have a Microsoft-developed operating system; but no one seems to know the ramifications of a Microsoft operating system on gaming.

The only other known fact is that people who have seen Dural say that it is magnificent. To date, Sega has not left Dural systems with game companies, so no one knows what the console can do, but the people who have had brief glimpses are quite impressed.

Hopefully, Dural will be able to live up to its billing.