PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the trend of renting a PS5 console has seen a significant rise in popularity over recent months. This surge can be attributed to a combination of factors including price increases, the release of a highly anticipated game series, and the introduction of a timely rental service by a major retailer.

In February, Japan’s GEO Corporation, a chain operating around 1,000 stores that specialize in renting and selling movies, music, and games, introduced a new service allowing customers to rent PS5 consoles. The rental prices are notably affordable, starting at 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. This initiative has proven extremely successful for GEO, with rental rates reaching between 80% to 100% at the 400 stores offering the service.

Yusuke Sakai, the manager overseeing GEO's rental products, shared with ITMedia that the concept of renting out PS5 consoles emerged in the summer of 2024. This was a strategic move prompted by the decline in their DVD and CD rental business due to the increasing dominance of streaming services.

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At that time, although PS5s were no longer scarce, there were rumors about potential price increases 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). This price hike led to widespread dissatisfaction among Japanese consumers, as evidenced by the numerous complaints on Sony’s official X announcement about the steep price of nearly 80,000 yen for a four-year-old console.

Sakai explained that GEO considered leveraging their existing rental infrastructure to offer PS5 rentals. With a history dating back to the late 1980s, GEO has been involved in selling, repairing, and renting various electronics, including consoles, DVDs, and CDs. Their expertise in handling second-hand consoles allowed them to repair and factory reset PS5s, significantly reducing costs. This enabled GEO to offer PS5 rentals at much lower rates than their competitors, who were charging between 4,500 to 8,900 yen per month for similar services. The affordability of GEO's service likely contributed to the sudden increase in PS5 rentals.

GEO's PS5 rental service was launched on February 28, strategically aligning with the release of Monster Hunter Wilds. Capcom’s Monster Hunter series has consistently been popular in Japan, and the limited platform availability of Monster Hunter Wilds posed a challenge for many Japanese gamers. Given Xbox's lesser popularity in Japan and the high PC specifications required for the game, the PS5 emerged as the preferred choice despite its high cost.

Sakai noted that GEO prioritized setting up the rental service in time for the launch of Monster Hunter Wilds, recognizing its potential as one of the year's biggest titles. This move aligns with GEO's long-standing philosophy of making expensive products accessible through affordable rentals, a practice they started with movie rentals in the 1980s when a single movie videotape or laserdisc could cost between 15,000 to 20,000 yen, whereas renting a movie was only around 1,000 yen a night. Today, with a PS5 costing nearly 80,000 yen, renting becomes an attractive option for many, including parents and students.

However, the cost-effectiveness of renting a PS5 may be less clear when considering additional expenses such as renting or buying games and subscribing to PSN for online play. Moreover, GEO currently offers only one-week and two-week rental plans, with an additional 500 yen per day for extended rentals.