Apple Retail Chief Admits Staffing Mistake

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Apple Inc.’s retail boss told employees the company made mistakes with its staffing levels, leading to news reports that the company was cutting employees, according to two people familiar with the matter.

In a communication with store leadership teams, senior vice president of retail, John Browett, who took the reins of Apple’s retail stores in April, said the company had been trying a new staffing formula for its retail stores.

Apple Stores to Match Discounts on iPhones

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The company has begun telling retail employees that they may offer discounts of $49 on the iPhone 4S and the iPhone 4 to customers who cite lower prices from other outlets, according to two people familiar with the matter.

The outlets include stores operated by Target Corp., Best Buy Co. and Sprint Nextel Corp., according to Apple‘s communications with employees.

Apple Raising Pay for Retail Workers

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Employees began learning of the raises in face-to-face meetings with managers last week, according to three Apple employees in various regions across the U.S. The raises, which are based on performance, will begin appearing in paychecks around the middle of July, two of these people said.

Employees said they were appreciative of the move, though they considered the raises had been a long time coming. The increased wages, one person said, more accurately reflected Apple’s position as a high-end retailer.

The iPhone Gives ‘Sonic the Hedgehog’ a Second Chance

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Old is the new cool in videogames.

Videogame titles that once gathered dust on collectors’ shelves have found a new life on mobile devices such as Apple Inc.’s iPhone, giving companies a cheap way to make money while also helping to promote new software.

It is what Take-Two Interactive Software Inc. did when it was preparing to release the third installment in a popular film-noire series called “Max Payne.” About a month before the new title went on sale, the company released “Max Payne Mobile”—the first game in the series released 11 years ago, reworked to run on smartphones and tablet computers rather than videogame consoles and personal computers.

Microsoft to Offer Xbox Subscriptions at Best Buy, GameStop

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Microsoft Corp. plans to boost the number of outlets offering its subscription plan for the Xbox, an effort to attract more users by lowering upfront costs of acquiring the game console.

The company, which had previously only made the offer available through 17 of its own stores, plans to extend its $99 offer—which combines a Xbox 360 and Kinect motion sensor with a two-year service contract—to all U.S. Best Buy Co. stores and a “select” grouping of GameStop Corp. stores.

Microsoft said it still regards the program as a pilot, adding that the stores will offer the deals to a limited number of users for a short period. If there is enough interest in the program, it may once again expand, the company said.

Zynga Defends OMGPOP Acquisition

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Zynga Inc. has faced plenty of questions after buying the maker of “Draw Something,” a mobile game that was released only six weeks earlier and has since lost popularity. Now the social games company is trying to provide some answers.

The San Francisco-based company on Thursday plans to announce an agreement with animation studio DreamWorks Animation SKG Inc. to place additional advertising in the game. Zynga believes it’s the start of new revenue-generating possibilities that will justify the controversial acquisition.

Blue Bottle Aims to Blend Slow Coffee, Fast Growth

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In an era of fast-food cappuccinos and drive-through coffee shops, Blue Bottle Coffee Co. is banking on slowing things down to help itself grow.

Since the Oakland-based coffee company’s founding in 2002, its revenue has jumped an average of about 50% annually to between $15 million and $20 million last year, according to James Freeman, founder and chief executive. As the company continues to expand—with plans to enter Manhattan in the next month of so—Blue Bottle could have more than 200 employees by the end of this year, up from about 70 two years ago.

Cars Pump Up IQ to Get Edge

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LAS VEGAS—Auto makers want their cars to be able to drive into the cloud.

Manufacturers like General Motors Co., Ford Motor Co. and Daimler AG‘s Mercedes-Benz Cars division are using the Consumer Electronics Show here to show off a set of computer services that operate online, or through the “cloud,“ and allow customers to remotely track their cars, diagnose what‘s wrong with them and potentially avoid collisions.