PS5 Console Rentals Surge in Japan: Here's Why

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

In February, GEO, a chain with around 1,000 stores specializing in renting and selling movies, music, and games, launched a PS5 rental service. With rental prices starting at just 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks, the service has seen immense success, with 80% to 100% of PS5 consoles rented out at the 400 stores offering this option.

The decision to start renting PS5 consoles came in the summer of 2024, as GEO noticed a decline in its DVD and CD rental business due to the rise of streaming services. At the same time, rumors of impending PS5 price increases due to weak exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by raising the price of the 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 was met with widespread dissatisfaction among Japanese consumers, many of whom voiced their concerns on Sony's official X announcement.

GEO’s manager in charge of rental products, Yusuke Sakai, explained that the company considered using its existing rental infrastructure to offer PS5s for rent. GEO, which has been in the business of selling, repairing, and renting electronics since the late 1980s, was well-equipped to handle this new venture. Their expertise in buying, selling, and repairing second-hand consoles allowed them to offer rentals at much lower prices than their competitors, who typically charged between 4500 and 8900 yen per month. This affordability likely encouraged many to try out the PS5 for a short period.

The timing of GEO’s PS5 rental service launch on February 28 was strategically aligned with the release of Capcom’s Monster Hunter Wilds. The Monster Hunter series is immensely popular in Japan, and the limited platform availability of Monster Hunter Wilds, coupled with the high PC specifications required and Xbox's lesser popularity in the region, made the PS5 a more appealing option despite its high cost. GEO prioritized setting up the service to coincide with the game’s launch, recognizing the potential demand.

Sakai highlighted that GEO’s rental service reflects the company's long-standing philosophy of allowing customers to try expensive products at a lower cost. This approach dates back to the 1980s when GEO made it affordable for customers to rent movies rather than buy expensive videotapes or laserdiscs. With a PS5 now costing nearly 80,000 yen, renting becomes a more attractive option for parents and students looking to experience the console without the full financial commitment.

However, the cost-effectiveness of renting a PS5 may be less clear when considering additional expenses such as renting or buying games and subscribing to PlayStation Network (PSN) for online play. Moreover, GEO's current rental plans are limited to one or two weeks, with an additional 500 yen per day charged for any extension beyond that period.

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