PREVIEW-Econ slowdown may trim Japan electronics makers' Q1

(For accompanying table, double-click on [ID:nT355812])

*Eyes on impact of slowing economy on product demand

*Sony hit by cellphone woes, Canon suffers slow copier sales

*Nintendo likely extends recent growth on Wii popularity

By Kiyoshi Takenaka

TOKYO, July 23 (Reuters) - Sony Corp (6758.T) is expected to report a smaller quarterly profit next week due to a sharp downturn at its cellphone business, while strong demand for the Wii game console likely boosted Nintendo Co Ltd's (7974.OS) results. Analysts said investors will be combing through the lastest earnings figures from Japanese game and electronics makers for clues as to how well they are weathering the global economic slowdown.

"It is quite clear that the macroeconomy is turning for the worse. The focus will be on how that is going to affect electronics companies, and how well they will be faring from the next quarter on," JPMorgan Securities analyst Yoshiharu Izumi said.

Camera and office equipment maker Canon Inc (7751.T) is set to report results on Thursday, followed by Sony and Panasonic-maker Matsushita Electric Industrial Co Ltd (6752.T) on July 29, Nintendo on July 30 and Sharp Corp (6753.T) on July 31.

Sony's cellphone joint venture with Sweden's Ericsson (ERICb.ST) last week reported a 2 million euro operating loss for April-June and said the market would remain tough for at least the rest of the year, boding ill for Sony's results.

The sluggish performance of the cellphone venture, which has until recently been one of Sony's key profit drivers, comes as the Japanese consumer electronics and entertainment conglomerate aims to make its game and TV operations profitable.

Sony said last week that sales of its PlayStation 3 game console have been in line with company targets for the current business year, and the video game industry as a whole appears relatively well-shielded from a cooling economy.

"People might cancel their European vacation or postpone their car or refrigerator purchase," Sony Computer Entertainment Chief Executive Kazuo Hirai told Reuters at the E3 video game trade show in Los Angeles.

"But little things like listening to music, watching movies and playing video games are the last ones to be cut, and things have not gone that bad yet," he said.

NINTENDO SHINES, AGAIN

Nintendo, in a three-way battle with Sony and Microsoft Corp (MSFT.O) in the global video game industry, is expected to report a double-digit profit gain for the latest quarter, continuing its break-neck pace of growth of recent years.

Its Wii console, which has by far outsold Sony's PlayStation 3 and Microsoft's Xbox 360, has been a success thanks to its easy-to-learn motion-sensing controller, low price, and innovative games such as the "Wii Fit" exercise game.

"Once investors realise how well Wii software is selling, they will probably take a new and favourable look at Nintendo shares," Okasan Securities analyst Masashi Morita said.

Nintendo shares jumped more than fivefold in the two years through last October on red-hot demand for its DS handheld and the Wii. But they have lost 22 percent since then on worries that the game maker's growth may have peaked.

On the other hand, Canon likely saw its quarterly profit drop as uncertain economic conditions have discouraged corporate clients from buying or replacing copiers.

"Demand for monochrome copiers mainly comes from industrialised nations. The often-cited scenario of emerging market demand offsetting the slowdown in the West is not applicable here," Daiwa Institute of Research analyst Hirokazu Mitsuda said.

Canon's rival Ricoh Co Ltd (7752.T) is expected to post a double-digit decline in quarterly profit for similar reasons. But Konica Minolta Holdings Inc (4902.T) is seen posting a higher profit, helped by brisk demand for high-tech film used to make flat panels.

Among major flat TV makers, Matsushita likely earned a bigger profit in the latest quarter on robust demand for its plasma TVs and mobile phones. But Sharp's operating profit is expected to be little changed amid fierce price competition in the liquid crystal display (LCD) TV market.

South Korea's LG Electronics Inc (066570.KS) said on Monday flat panel prices were set to fall this quarter with the LCD market in oversupply, casting a shadow over Sharp, which not only sells its own flat TVs but offers flat panel displays to other TV makers. (Reporting by Kiyoshi Takenaka; Editing by Chris Gallagher)