PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the recent surge in renting PS5 consoles can be attributed to a combination of factors including console price hikes, the popularity of a major game series, and the strategic launch of a rental service by GEO Corporation.

In February, GEO Corporation, a well-established chain with around 1,000 stores across Japan, introduced a PS5 rental service. With rental prices starting at an affordable 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks, the service has seen remarkable success. At the 400 stores offering this service, between 80% to 100% of available PS5 consoles are rented out.

The decision to offer PS5 rentals was spurred by declining DVD and CD rental numbers, a trend exacerbated by the rise of streaming services. According to Yusuke Sakai, the manager in charge of GEO’s rental products, the idea emerged in the summer of 2024. At that time, although PS5 supply issues had subsided, rumors of impending price increases due to weak exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by raising 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 significant price hike led to widespread dissatisfaction among Japanese consumers, many of whom expressed their frustration on Sony's official X announcement.

GEO capitalized on this dissatisfaction by utilizing its existing rental infrastructure, which included in-store and online systems as well as staff experienced in repairing and resetting second-hand consoles. This allowed GEO to offer PS5 rentals at much lower prices compared to competitors, who charged between 4500 to 8900 yen per month. The affordable rental rates made it easier for curious gamers to try out the PS5 for a short period.

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 a strong following in Japan. However, the limited platform availability of "Monster Hunter Wilds," combined with the high PC specifications required and Xbox's lesser popularity in Japan, made the PS5 the preferred choice for many gamers. Sakai highlighted that getting the service ready for the game's launch was a top priority.

GEO's approach reflects its long-standing philosophy of allowing customers to try 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 a night, a stark contrast to the high cost of purchasing a movie videotape or laserdisc. Today, with the PS5 priced at nearly 80,000 yen, renting becomes an attractive option for many, including parents and students.

However, the cost-effectiveness of renting a PS5 may not be as clear-cut as it seems. Additional expenses such as renting or buying games and subscribing to PlayStation Network (PSN) for online play can add up. Furthermore, GEO's current rental plans are limited to one or two weeks, with a daily charge of 500 yen for any extension.

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