PS5 Console Rentals Surge in Japan: Here's Why

The surge in popularity of renting PS5 consoles in Japan is driven by a combination of factors, including console price hikes, the launch of a highly anticipated game series, and the strategic introduction of a new rental service by a major Japanese retailer.

In February, Japan's GEO Corporation, a chain with approximately 1,000 stores that specializes in renting and selling movies, music, and games, launched a PS5 rental service. With rental prices starting at an affordable 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks, GEO's service has proven to be extremely successful. Between 80% to 100% of their PS5 consoles are rented out at the 400 stores participating in the program.

Yusuke Sakai, the manager in charge of rental products at GEO, shared with ITMedia that the concept of renting out PS5 consoles was conceived in the summer of 2024. This was a period when GEO's DVD and CD rentals were declining due to the rise of streaming services. At the same time, rumors were circulating about potential price increases for the PS5 in Japan due to unfavorable exchange rates. 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). The domestic price hike was met with significant dissatisfaction from Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement, noting that nearly 80,000 yen was too steep a price for a console that was already four years old.

"At this point, we began to consider whether we could rent out PS5 consoles using our existing rental system," Sakai explained. GEO, having been in the business of selling, repairing, and renting consoles, DVDs, CDs, and other electronics since the late 1980s, had well-established rental systems both in-store and online. Their experience in buying and selling second-hand consoles also enabled them to have staff capable of repairing and factory resetting PS5s. This expertise allowed GEO to offer their PS5 rental service at significantly lower prices compared to other Japanese companies, which previously charged between 4,500 to 8,900 yen per month. GEO's competitive pricing likely played a crucial role in the sudden increase in PS5 rentals, making it more accessible for those curious about trying the console for a short period.

The timing of GEO's PS5 rental service launch on February 28 was impeccable, coinciding with the release of Monster Hunter Wilds. Capcom's Monster Hunter series has long been popular in Japan, but the limited platform availability of Monster Hunter Wilds posed a challenge for many players. With Xbox being less popular in Japan and the high PC specifications required for the game, the PS5 emerged as the preferred option—albeit at a high cost. "We knew that Monster Hunter Wilds was going to be one of the biggest titles of the year, so we made it our top priority to get the service set up in time for that," Sakai noted.

GEO's rental service aligns with their long-standing philosophy of allowing customers to try out expensive products at a fraction of the purchase cost. Sakai reflected on how, back in the 1980s, renting a movie was a more affordable option than buying a costly videotape or laserdisc. Similarly, at nearly 80,000 yen, a PS5 console represents a significant investment for many, making renting an attractive alternative, particularly for parents buying for their children or students saving up.

However, the cost-effectiveness of renting a PS5 can be debated when considering additional expenses such as renting or purchasing games and the need for 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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