PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the recent surge in PS5 console rentals can be attributed to a combination of factors including price hikes, the popularity of a major game release, and the strategic introduction of a rental service by GEO Corporation. GEO, a chain with around 1,000 stores that traditionally rents and sells movies, music, and games, launched its PS5 rental service in February, offering rentals starting at 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. This initiative has proven highly successful, with rental rates at GEO's 400 participating stores reaching between 80% and 100%.

Yusuke Sakai, the manager in charge of GEO's rental products, shared with ITMedia that the decision to rent out PS5 consoles was sparked in the summer of 2024, as the company noticed a decline in DVD and CD rentals due to the rise of streaming services. At that time, although PS5 supply issues had eased, rumors of an impending price increase due to unfavorable exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by increasing the price of the PS5 Digital Edition from 59,980 yen (approximately $427) to 72,980 yen (approximately $520), and the disc drive version from 66,980 yen (approximately $477) to 79,980 yen (approximately $569). This price hike was met with significant backlash from Japanese consumers, many of whom expressed frustration over the high cost of a four-year-old console on Sony's official X announcement.

GEO capitalized on this situation by utilizing its existing rental infrastructure, which had been in place since the late 1980s for various electronics, including consoles, DVDs, and CDs. The company's ability to repair and factory reset second-hand PS5s allowed them to offer rentals at a much lower price than competitors, who typically charged between 4,500 and 8,900 yen per month. GEO's affordable rates made it feasible for those curious about the PS5 to try it out for a short period, likely contributing to the sudden spike in rentals.

The timing of GEO's PS5 rental service launch was strategic, aligning perfectly with the release of "Monster Hunter Wilds" on February 28. The Monster Hunter series, developed by Capcom, has always been immensely popular in Japan. However, "Monster Hunter Wilds" was only available on a limited number of platforms, and with Xbox being less popular in Japan and the game's high PC system requirements, the PS5 emerged as the preferred choice for many gamers. Sakai noted that GEO prioritized launching the service in time for "Monster Hunter Wilds," recognizing its potential as one of the year's biggest titles.

GEO's rental approach reflects its long-standing philosophy of allowing customers to experience expensive products at a lower cost. This philosophy dates back to the 1980s when GEO made it possible to rent movies for around 1,000 yen per night, a fraction of the 15,000 to 20,000 yen it would cost to buy a single movie on videotape or laserdisc. Today, with a PS5 costing nearly 80,000 yen, renting becomes an attractive option for parents and students alike.

However, the affordability of renting a PS5 can be deceptive when considering additional costs such as renting or purchasing games and the necessity of a PSN subscription for online play. Additionally, GEO's current rental plans are limited to one or two weeks, with an extension fee of 500 yen per day.

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