PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in popularity of renting a PS5 console over the past few months is driven by a combination of factors including price increases, the launch of a highly anticipated game, and a well-timed service from a specific retailer. GEO Corporation, a chain of around 1,000 stores specializing in the rental and sale of movies, music, and games, introduced a PS5 rental service in February. The rental starts at an affordable 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks, which has proven to be a massive hit. At the 400 stores offering this service, between 80% to 100% of their PS5 consoles are consistently rented out.

According to Yusuke Sakai, the manager in charge of GEO's rental products, the idea to rent out PS5 consoles emerged in the summer of 2024. This was a period when GEO's traditional DVD and CD rentals were declining due to the rise of streaming services. At the same time, rumors were circulating about potential PS5 price increases in Japan due to unfavorable exchange rates. These rumors became reality on September 2, 2024, when Sony announced a price hike, increasing the cost 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 move was met with significant backlash from the Japanese gaming community, as seen in the comments on Sony’s official X announcement, where many expressed that nearly 80,000 yen was too steep for a console that was already four years old.

GEO capitalized on this situation by leveraging its existing rental infrastructure and expertise in handling second-hand consoles. The company's staff were well-equipped to repair and factory reset PS5s, allowing GEO to offer its rental service at significantly lower prices than competitors, who typically charged between 4,500 to 8,900 yen per month. This affordability likely played a crucial role in the spike in PS5 rentals, making it an attractive option for those curious about the console.

The timing of GEO’s PS5 rental service launch on February 28 was strategic, aligning perfectly with the release of Capcom's Monster Hunter Wilds. The Monster Hunter series has a strong following in Japan, and the limited platform availability of Monster Hunter Wilds, coupled with the high PC specifications needed and Xbox's lesser popularity in the region, made the PS5 the preferred choice for many gamers. However, the console's high cost was a barrier. Sakai emphasized that the launch of Monster Hunter Wilds was a key motivator for setting up the rental service in time, reflecting GEO's commitment to providing access to major titles at a lower cost.

GEO’s approach echoes its long-standing philosophy of enabling customers to try expensive products at a fraction of the cost. In the 1980s, GEO made it possible to rent movies for around 1,000 yen a night, when purchasing a single movie could cost between 15,000 to 20,000 yen. Today, with the PS5 priced at nearly 80,000 yen, renting becomes a more feasible option for many, including parents and students who might find the purchase price prohibitive.

However, the cost-effectiveness of renting a PS5 can be nuanced. Additional expenses, such as renting or buying games and subscribing to PSN for online play, can add up. Furthermore, GEO's rental plans currently only offer one and two-week options, with an additional 500 yen per day for any extensions.

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