PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in popularity of renting PS5 consoles can be attributed to a combination of factors including console price increases, the launch of a highly anticipated game series, and a strategic new service introduced by a major retailer.

In February, Japan's GEO Corporation, a chain with around 1,000 stores that specializes in renting and selling movies, music, and games, launched a PS5 rental service. This service allows customers to rent a PS5 for as little as 980 yen (approximately $7) for a week, or 1,780 yen (approximately $12.50) for two weeks. The initiative has proven highly successful, with 80% to 100% of the PS5 consoles rented out at the 400 stores participating in the service.

GEO's decision to offer PS5 rentals came in the summer of 2024, prompted by declining DVD and CD rental numbers due to the rise of streaming services. At the same time, rumors of impending PS5 price hikes in Japan were circulating, driven by weak exchange rates. On September 2, 2024, Sony confirmed these rumors by increasing the price of the PS5 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 increase was met with significant backlash from Japanese consumers, many of whom expressed their frustration over the high cost of the then four-year-old console.

GEO's Yusuke Sakai, the manager in charge of rental products, saw an opportunity to leverage the company's existing rental infrastructure. Since the late 1980s, GEO has been involved in selling, repairing, and renting consoles, DVDs, CDs, and other electronics. This existing expertise allowed GEO to offer PS5 rentals at much lower prices than competitors, who were charging between 4,500 to 8,900 yen per month. The affordability of GEO's service likely encouraged many to try out a PS5 for a short period.

The timing of GEO's PS5 rental service launch on February 28 was particularly strategic, aligning with the release of Capcom's Monster Hunter Wilds. The Monster Hunter series has a strong following in Japan, but the latest installment's limited platform availability posed a challenge for many fans. With Xbox less popular in Japan and Monster Hunter Wilds requiring high PC specifications, the PS5 emerged as the preferred choice despite its high cost. Sakai emphasized that launching the rental service in time for Monster Hunter Wilds was a priority, recognizing the game's potential to drive demand for PS5 rentals.

GEO's approach reflects its long-standing philosophy of making expensive products accessible through rentals. In the 1980s, GEO enabled customers to rent movies for around 1,000 yen a night, a fraction of the cost of purchasing a single movie videotape or laserdisc. Today, with a PS5 costing nearly 80,000 yen, renting becomes an attractive option for parents and students looking to enjoy the latest gaming technology without the hefty upfront investment.

However, while renting a PS5 may seem cost-effective at first glance, additional expenses can add up. Renters must consider the cost of renting or buying games, as well as the need for a PSN subscription for online play. Additionally, GEO's rental plans are limited to one or two weeks, with a daily fee of 500 yen for extended periods.

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