Sake (pronounced "Sah key" is a traditional Japanese rice-based alcoholic drink. It's sometimes called "rice wine" but it is made more like beer.
A sake house is like an upscale bar (sometimes with the relaxed pub-style seating depending on how fancy the place is) where, in addition to sake and other alcoholic beverages, they serve sushi and other traditional Japanese appetizers instead of "ub grub".
I think pubs seem a lot more inviting (cozy I guess) than bars. At bars, the food is weak (low-quality and well overpriced), the crowd is loud and plastered. At pubs, the food is good (more-than-decent quality and moderately priced), the crowd is not quite as inebriated, generally sober, and decent.