In Japan, the sudden surge in popularity of renting a PS5 console can be attributed to a combination of factors including console price hikes, the launch of a highly anticipated game series, and a strategic move by a major retailer.
In February, Japan's GEO Corporation, a chain with approximately 1,000 stores that deal in renting and selling movies, music, and games, introduced a service allowing customers to rent PS5 consoles. This service, which starts at an affordable rate of 980 yen (around $7) for a week and 1780 yen (around $12.50) for two weeks, has proven immensely successful. At the 400 stores offering this service, between 80% to 100% of the PS5 consoles are rented out.
The concept of renting PS5 consoles was conceived by GEO in the summer of 2024, as the company noticed a decline in DVD and CD rentals due to the increasing popularity of streaming services. Yusuke Sakai, the manager overseeing GEO’s rental products, told ITMedia that the timing was critical due to looming rumors of PS5 price increases in Japan due to unfavorable exchange rates. On September 2, 2024, Sony confirmed these rumors by raising the price of the PS5 Digital Edition from 59,980 yen (around $427) to 72,980 yen (around $520), and the disc drive version from 66,980 yen (around $477) to 79,980 yen (around $569). This price hike sparked widespread dissatisfaction among Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement, deeming the new prices, nearing 80,000 yen, too steep for a console that was already four years old.
GEO capitalized on this discontent by leveraging its existing rental infrastructure, which had been in place since the late 1980s for selling, repairing, and renting various electronics. The company’s ability to buy, sell, and refurbish second-hand consoles allowed it to offer PS5 rentals at significantly lower prices than other competitors, who charged between 4500 to 8900 yen monthly. This affordability has made it feasible for even the mildly curious to try out the PS5 for a short period, contributing to the spike in rentals.
The launch of GEO's PS5 rental service on February 28 coincided perfectly with the release of Monster Hunter Wilds, a game from Capcom’s highly popular Monster Hunter series. Given the series' strong following in Japan and the game's limited availability on other platforms—with Xbox being less popular in the region and the PC version requiring high specifications—the PS5 became the preferred choice for many, despite its cost. Sakai emphasized that getting the rental service ready in time for Monster Hunter Wilds was a top priority, recognizing its potential as one of the year's biggest titles.
GEO's approach to renting out PS5 consoles aligns with its longstanding philosophy of making expensive products accessible through rentals. This strategy echoes the company's past success in the 1980s, when it made expensive movie videotapes and laserdiscs affordable to rent at around 1,000 yen per night. Today, with a PS5 costing nearly 80,000 yen, renting becomes an attractive option for many, including parents and students who might find the purchase price prohibitive.
However, it's worth noting that the overall cost of renting a PS5 could be higher than it initially seems, especially when additional expenses such as game rentals or purchases and PSN subscription fees for online play are considered. Additionally, GEO currently offers only one-week and two-week rental plans, with an extension fee of 500 yen per day.
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