PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in popularity of renting PS5 consoles over the past few months can be attributed to a combination of factors, including price hikes, the launch of a highly anticipated game series, and the strategic introduction of a rental service by a major retailer.

In February, Japan’s GEO Corporation, a chain of approximately 1,000 stores known for renting and selling movies, music, and games, began offering PS5 console rentals. With rental prices starting at an affordable 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks, GEO has seen tremendous success. At the 400 stores offering this service, between 80% to 100% of their PS5 consoles are consistently rented out.

Yusuke Sakai, the manager in charge of GEO’s rental products, told ITMedia that the idea to rent out PS5 consoles emerged in the summer of 2024. At the time, GEO was facing a decline in DVD and CD rentals due to the rising popularity of streaming services. Meanwhile, rumors of PS5 price increases in Japan due to weak exchange rates were circulating. 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, many of whom voiced their frustration on Sony’s official X announcement, noting that nearly 80,000 yen was too steep for a console that had been on the market for four years.

GEO capitalized on this discontent by leveraging its existing rental system. Since the late 1980s, GEO has been selling, repairing, and renting various electronics, which meant they already had the infrastructure in place for both in-store and online rentals. Their expertise in handling second-hand consoles allowed them to keep costs low by repairing and resetting PS5 units. This enabled GEO to offer their PS5 rental service at significantly lower rates than their competitors, who typically charged between 4,500 to 8,900 yen per month. The affordability of GEO’s service likely played a key role in the sudden increase in PS5 rentals, making it accessible for anyone curious about the console to try it out for a short period.

The timing of GEO’s rental service launch on February 28 was impeccable, aligning with the release of Capcom’s Monster Hunter Wilds. The Monster Hunter series has a strong following in Japan, and the limited platform availability of Monster Hunter Wilds posed a challenge for many fans. With Xbox less popular in Japan and the game requiring high PC specs, the PS5 emerged as the preferred choice for many players. However, the console's high price was a barrier, making GEO’s rental service an attractive solution.

Sakai emphasized that GEO prioritized setting up the service in time for Monster Hunter Wilds' launch, recognizing it as one of the year's biggest titles. This aligns with GEO’s long-standing philosophy of allowing customers to try out expensive products at a lower cost. In the 1980s, GEO made it possible to rent movies for around 1,000 yen a night, a far cry from the 15,000 to 20,000 yen it cost to buy a single videotape or laserdisc. Today, with a PS5 costing nearly 80,000 yen, renting becomes a more appealing option for parents and students alike.

However, the cost of renting a PS5 might not be as economical as it seems at first glance. Additional expenses such as renting or purchasing games and subscribing to PSN for online play can add up. Moreover, GEO only offers one and two-week rental plans, with an additional fee of 500 yen per day for extended rentals.

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