Here’s Why PS5 Console Rentals Are Booming in Japan

In Japan, the recent surge in renting PS5 consoles can be attributed to a combination of factors including price hikes, the popularity of a major game series, and the strategic introduction of a rental service by GEO Corporation.

In February, GEO Corporation, a prominent chain with around 1,000 stores across Japan, launched a PS5 rental service. This service offers rentals starting at just 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. The initiative has proven highly successful, with rental rates reaching between 80% to 100% at the 400 stores participating in the program.

Yusuke Sakai, the manager overseeing GEO's rental products, shared with ITMedia that the concept of renting PS5 consoles emerged in the summer of 2024. This was a time when GEO's traditional DVD and CD rental business was declining due to the rise of streaming services. Concurrently, rumors of impending PS5 price increases in Japan due to unfavorable exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by raising 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 hike was met with significant backlash from Japanese consumers, many of whom expressed their frustration on Sony's official X announcement, citing the high cost of the four-year-old console.

GEO saw an opportunity in this scenario. Leveraging its existing rental infrastructure and expertise in handling second-hand consoles, the company was able to offer PS5 rentals at a much lower cost than competitors, who typically charged between 4,500 to 8,900 yen per month. This affordability made it easier for curious consumers to try out the PS5 for a short period.

The timing of GEO's PS5 rental service launch on February 28 was also strategic, aligning perfectly with the release of "Monster Hunter Wilds." The Monster Hunter series, developed by Capcom, has a strong following in Japan. However, the latest installment, "Monster Hunter Wilds," was only available on a limited number of platforms. Given Xbox's lesser popularity in Japan and the high PC specifications required for the game, the PS5 became the preferred choice for many gamers, despite its high cost. Sakai emphasized that launching the rental service in time for "Monster Hunter Wilds" was a top priority, recognizing the game's potential to drive demand.

GEO's approach reflects its long-standing philosophy of making expensive products more accessible through rentals. Historically, GEO enabled customers to rent movies for around 1,000 yen a night, a fraction of the cost of purchasing a videotape or laserdisc in the 1980s. Today, with the PS5 priced at nearly 80,000 yen, renting becomes an attractive option for parents and students who might find the outright purchase prohibitive.

However, the cost-effectiveness of renting a PS5 can be nuanced. Additional expenses such as renting or buying games and subscribing to PSN for online play can add up. Moreover, GEO's rental plans are limited to one or two weeks, with an additional charge of 500 yen per day for extended rentals.

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