Game systems to cut prices

Microsoft Corp. is cutting the U.S. price of its Xbox video game console from $299 to $199, mirroring a move announced by console kingpin Sony for its Playstation 2.

John O’Rourke, director of global Xbox marketing, said Tuesday that the additional reductions have been in the works for several months, with an announcement previously planned for next week. He said Sony’s move forced Microsoft to accelerate its cut “to make sure nobody buys another video game system because of price.”

Sony, the Japanese electronics and entertainment giant, on Tuesday slashed the U.S. price of PlayStation 2 to $199.

Business school

KU to honor alumni

Kansas University Business School Dean William Fuerst announced Wednesday that Fred Ball, chairman and CEO of Balls Food Stores in Kansas City, Kan., and William Patterson, founder of Stonecreek Management of Westwood, have been named distinguished alumni of the year.

Balls Food Stores is a major grocery store company operating 28 stores under the names of Price Chopper and Hen House Markets. Ball also is chairman of the board of Associated Wholesale Grocers, which operates warehouses in Kansas City, Oklahoma City, and Springfield Mo. Ball is a 1956 graduate of the business school.

Patterson’s Stonecreek Management focuses on investing in small businesses. Before co-founding Stonecreek in May 1998, Patterson was executive vice president and chief financial officer for Premium Standard Farms, a major hog producer. He is a 1963 graduate of the business school.

They will be honored during a ceremony at 4 p.m. Friday at the Lied Center.

Technology

IBM chief mum on job cuts

With its 320,000 employees waiting for word of layoffs, IBM Corp. chief executive Samuel Palmisano deftly dodged the issue Wednesday, saying only “you’ll be hearing what we’ll be doing about reducing the company’s worker base.”

Palmisano spoke at the company’s annual spring analysts meeting in New York, just weeks after IBM reported its worst quarterly earnings drop in nearly a decade.

Palmisano refused to say how many jobs may be cut, but did say the company would look to reduce its costs by $1 billion to $2 billion.

Overland Park

Applebee’s predicting growth

Overland Park-based Applebee’s International Inc. expects annual earnings per share growth of 14 percent to 17 percent for the next three to five years, beginning next year.

The restaurant operator reiterated Wednesday fiscal 2002 earnings guidance of $2.11 to $2.15 a share, before adjusting for a 3-for-2 stock split announced May 9.

Wall Street

Firms announce earnings

Topeka-based Payless Shoesource announced Wednesday earning for its first quarter were $1.05 per share down from $1.30 per share during the same period a year ago.

Abercrombie & Fitch, which operates a store in Lawrence, posted first-quarter earnings of 23 cents per share, up from 20 cents per share a year earlier

J.C. Penney, which also operates a store in Lawrence, posted first-quarter earnings of 29 cents per share, up from 13 cents per share during the first quarter of 2001.