PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the recent surge in PS5 console rentals can be attributed to a combination of factors, including price hikes, a popular game series, and a well-timed service introduction by GEO Corporation. GEO, a chain with around 1,000 stores, began offering PS5 rentals in February, with prices starting at a budget-friendly 980 yen (approximately $7) for a week and 1,780 yen (about $12.50) for two weeks. This service has proven immensely popular, with rental rates between 80% to 100% at the 400 stores offering it.

Yusuke Sakai, the manager in charge of GEO's rental products, shared with ITMedia that the idea to rent out PS5 consoles emerged in the summer of 2024. At that time, GEO was experiencing a decline in DVD and CD rentals due to the growing preference for streaming services. The decision to venture into console rentals was further influenced by rumors of an impending PS5 price increase in Japan, driven by weak exchange rates. On September 2, 2024, Sony confirmed these rumors by raising the price of the Digital Edition from 59,980 yen (about $427) to 72,980 yen (around $520), and the disc drive version from 66,980 yen (approximately $477) to 79,980 yen (about $569). This price hike was met with significant backlash from Japanese consumers, many of whom expressed their frustration on Sony's official X announcement, citing the near 80,000 yen price as too steep for a four-year-old console.

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Sakai noted that GEO's existing infrastructure for renting, selling, and repairing electronics, which dates back to the late 1980s, allowed the company to efficiently set up the PS5 rental service. GEO's ability to buy, sell, and repair second-hand consoles enabled them to offer competitive pricing, with rentals significantly cheaper than other services in Japan, which typically range from 4,500 to 8,900 yen per month. The affordability of GEO's service likely encouraged more people to try out the PS5, contributing to the rental spike.

The timing of GEO's service launch on February 28 couldn't have been better, as it coincided with the release of Monster Hunter Wilds. The Monster Hunter series is extremely popular in Japan, and Monster Hunter Wilds being exclusive to certain platforms left many Japanese gamers eager to play it on PS5, despite the console's high cost. Sakai emphasized that launching the rental service in time for Monster Hunter Wilds was a top priority for GEO, understanding the game's significant impact on the market.

GEO's PS5 rental service aligns with the company's longstanding philosophy of allowing customers to experience expensive products at a lower cost. Sakai reflected on how, in the 1980s, renting a movie was much more affordable than purchasing a videotape or laserdisc. Today, with the PS5 priced at nearly 80,000 yen, renting becomes an attractive option for parents and students alike.

However, the cost-effectiveness of renting a PS5 can be questioned when considering additional expenses such as game rentals or purchases and the necessity of a PSN subscription for online play. Additionally, GEO's rental plans are limited to one or two weeks, with an extra charge of 500 yen per day for extended rentals.