PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the recent surge in popularity of renting a PS5 console can be attributed to a combination of factors, including price increases, a highly anticipated game release, and a timely new service introduced by a major retailer. GEO Corporation, a chain with around 1,000 stores that specializes in renting and selling movies, music, and games, launched a PS5 rental service in February. This service offers rentals starting at an affordable 980 yen (approximately $7) for one week, and 1,780 yen (approximately $12.50) for two weeks. The success of this initiative is evident, with 80% to 100% of the PS5 consoles being rented out at the 400 stores that offer this service.

GEO's decision to rent out PS5 consoles was influenced by the decline in DVD and CD rentals due to the rise of streaming services. Yusuke Sakai, the manager in charge of GEO's rental products, shared with ITMedia that the idea emerged in the summer of 2024. At that time, although PS5 supply issues had been resolved, rumors of an impending price hike 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 increase led to widespread dissatisfaction among Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement, citing the high cost of the then four-year-old console.

Sakai explained that GEO considered utilizing their existing rental system for PS5 consoles in response to the price hike. With a long history of selling, repairing, and renting electronics since the late 1980s, GEO had the necessary infrastructure and expertise. The company's ability to buy, sell, and repair second-hand consoles allowed them to offer competitive rental prices, significantly lower than other Japanese companies, which ranged from 4,500 to 8,900 yen per month. GEO's affordable pricing likely played a crucial role in the sudden increase in PS5 rentals, making it accessible for those curious about the console to try it out for a short period.

The timing of GEO's PS5 rental service launch on February 28 was strategic, aligning with the release of Monster Hunter Wilds. Capcom's Monster Hunter series is immensely popular in Japan, and the limited platform availability of Monster Hunter Wilds posed a challenge for many fans. Given Xbox's lesser popularity in Japan and the high PC specifications required for the game, the PS5 became the preferred choice for many, despite its cost. Sakai highlighted that GEO prioritized setting up the service in time for Monster Hunter Wilds' release, recognizing its potential as one of the year's biggest titles.

GEO's rental service embodies the company's longstanding philosophy of allowing customers to experience expensive products at a lower cost. This approach harks back to the 1980s when renting a movie was a more affordable alternative to purchasing a costly videotape or laserdisc. Today, with the PS5's price nearing 80,000 yen, renting becomes an appealing option for parents and students alike.

However, the overall cost of renting a PS5 may not be as economical as it seems when considering additional expenses such as renting or buying games and subscribing to PSN for online play. Additionally, GEO's current rental plans are limited to one or two weeks, with an additional charge of 500 yen per day for extended rentals.

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