PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the recent surge in renting PS5 consoles is a multifaceted phenomenon driven by several key factors, including price increases, the popularity of a major game series, and the strategic introduction of a rental service by a major 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 service allowing customers to rent PS5 consoles. The rental prices are remarkably affordable, starting at just 980 yen (around $7) for a week and 1780 yen (about $12.50) for two weeks. This initiative has proven immensely successful, with rental rates reaching between 80% to 100% at the 400 stores offering the service.

Yusuke Sakai, the manager in charge of rental products at GEO, shared with ITMedia that the concept of renting PS5s emerged in the summer of 2024. This was a period when GEO's DVD and CD rental business was declining due to the increasing dominance of streaming services. At the same time, rumors were circulating about potential PS5 price hikes in Japan, driven by unfavorable exchange rates. On September 2, 2024, Sony confirmed these rumors by increasing the price of the PS5 Digital Edition from 59,980 yen (approx. $427) to 72,980 yen (approx. $520), and the disc drive version from 66,980 yen ($477) to 79,980 yen ($569). The price increase sparked significant backlash among Japanese consumers, many of whom voiced their frustration on Sony’s official X announcement, arguing that nearly 80,000 yen was too steep for a console that was already four years old.

Sakai noted that this was the catalyst for GEO to explore the possibility of integrating PS5 rentals into their existing system. GEO, with its long history of selling, repairing, and renting electronics since the late 1980s, was well-equipped to manage this new service. The company's ability to purchase, refurbish, and resell second-hand consoles allowed them to keep rental prices low, significantly undercutting competitors who were charging between 4500 to 8900 yen monthly for similar services. This competitive pricing has made it feasible for many to try out a PS5 for a short period, contributing to the sudden popularity of the rental service.

The timing of GEO's PS5 rental service launch on February 28 was impeccable, aligning with the release of Monster Hunter Wilds. Capcom's Monster Hunter series has a strong following in Japan, but the limited platform availability of Monster Hunter Wilds posed a challenge for many fans. With Xbox less popular in Japan and the high PC specs required for the game, the PS5 emerged as the preferred choice for many, despite its high cost. Sakai emphasized that GEO prioritized setting up the service in time for the game's launch, recognizing the potential demand.

GEO's rental philosophy harks back to its origins in the 1980s, when it made expensive movie rentals affordable. Today, with a PS5 priced at nearly 80,000 yen, renting the console becomes a more appealing option for many, including parents and students. However, potential renters should be aware of additional costs, such as game rentals or purchases and the need for a PSN subscription for online play. Furthermore, GEO's rental plans are limited to one or two weeks, with an additional 500 yen per day for extended rentals.

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