PS5 Console Rentals Surge in Japan: Here's Why

The recent surge in renting PS5 consoles in Japan can be attributed to a combination of factors including console price increases, the popularity of a specific game series, and a strategic new service introduced by a local retailer. In February, GEO Corporation, a chain with approximately 1,000 stores across Japan, began offering PS5 rentals at competitive rates starting from 980 yen (around $7) for a week and 1,780 yen (about $12.50) for two weeks. This service has proven highly successful, with rental rates at GEO's 400 participating stores reaching between 80% to 100%.

The decision to start renting PS5 consoles was influenced by the decline in GEO's DVD and CD rental business, due to the growing preference for streaming services. Yusuke Sakai, the manager overseeing GEO's rental products, noted that the idea emerged in the summer of 2024. At that time, despite no longer facing supply shortages, the PS5 was rumored to face price hikes in Japan due to unfavorable exchange rates. 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 (about $520), and the disc drive version from 66,980 yen ($477) to 79,980 yen ($569). This price increase was met with significant backlash from Japanese consumers, many of whom voiced their frustrations on Sony’s official X announcement, criticizing the high cost for a console that was already four years old.

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GEO saw an opportunity to leverage its existing rental infrastructure, which had been in place since the late 1980s, to offer PS5 rentals. The company's experience in selling, repairing, and renting various electronics, including second-hand consoles, allowed them to maintain low costs and offer competitive prices. Prior to GEO's service, other Japanese companies were charging between 4,500 to 8,900 yen monthly for PS5 rentals, making GEO's offering significantly more affordable and accessible to those curious about the console.

The timing of GEO's PS5 rental service launch on February 28 coincided perfectly with the release of "Monster Hunter Wilds," a highly anticipated game from Capcom's popular Monster Hunter series. The game's limited availability on other platforms, combined with the high PC specifications required, made the PS5 a more appealing choice for many Japanese gamers, despite its cost. Sakai emphasized that getting the rental service ready for "Monster Hunter Wilds" was a priority, understanding the game's potential impact on the market.

GEO's approach aligns with its long-standing business philosophy of allowing customers to experience expensive products at a lower cost. This is reminiscent of their early days when they made movie rentals affordable amidst high purchase prices for video tapes and laserdiscs. Today, with the PS5's price nearing 80,000 yen, renting becomes a more attractive option for many, including parents and students.

However, potential renters should be aware that the overall cost of renting a PS5 might not be as low as it seems. 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 extend to one or two weeks, with a daily charge of 500 yen for any extensions beyond that period.