<i> A roundup of business developments spotted by other publications. Items were compiled and edited by Grassroots Research, a unit of the San Francisco money management firm RCM Capital Management. </i>

Of Mice and Milk: Mice at the University of Wisconsin are helping advance the technology of breeding dairy cows that produce specialty milks. The “milk mice” are being genetically engineered to produce milks rich in various proteins. Researchers hope to transfer the technique to cows. Among the special milks that may be produced: milk high in casein, which could produce firmer cheeses, a milk “naturally” fortified with vitamins and milk with less than the normal amount of butterfat. Milwaukee Journal

Hardware Sales Soft: Nintendo software may be selling like hot cakes, but hardware sales are cooling. Sales will drop a projected 8.8% this year, the first time they’ve fallen. At the same time, software sales are expected to jump 26%, thanks to doubled advertising budgets by the top three licensees, Acclaim Entertainment, Konami and Capcom USA. Overall, Nintendo should continue to do well, due in part to sales of Game Boy, its hand-held unit. But one industry watcher seems to speak for many when he says Nintendo will have to start at the beginning in marketing its new 16-bit system in 1991 and “it will be competing evenly with Sega and NEC.” Advertising Age

Fare and Foul: Gray markets are developing in blue skies as travelers unable to use previously purchased tickets try to resell them. The reselling of non-refundable, non-transferable frequent-flier coupons is forbidden by airlines, which have defended their policy in court, maintaining that the practice interferes with the airlines’ right to conduct business. Sales and barters continue nonetheless; a recent survey found a sky-high 92% of 250 corporate travel managers admitting that they buy on the gray market. Philadelphia Inquirer