PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in popularity of renting PlayStation 5 (PS5) consoles can be attributed to a combination of factors including price increases, the release of a highly anticipated game, and a well-timed rental service introduced by GEO Corporation.

In February, GEO Corporation, a prominent chain with around 1,000 stores across Japan, began offering PS5 rentals at affordable rates. Customers can rent a PS5 for as little as 980 yen (approximately $7) for a week or 1,780 yen (approximately $12.50) for two weeks. This initiative has proven highly successful, with rental rates at GEO's 400 participating stores reaching between 80% to 100%.

The decision to offer PS5 rentals came in the summer of 2024, as GEO faced declining DVD and CD rental revenues due to the rise of streaming services. Yusuke Sakai, the manager in charge of GEO's rental products, shared with ITMedia that the rental service was a strategic move to adapt to changing consumer habits.

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View 26 ImagesAt the time, despite no longer facing supply shortages, rumors of impending PS5 price hikes in Japan due to unfavorable exchange rates were circulating. 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, who expressed their dissatisfaction on Sony's official X announcement, citing the steep cost for a four-year-old console.

Sakai explained that GEO saw an opportunity to leverage its existing rental infrastructure to offer PS5 rentals. With experience in selling, repairing, and renting electronics since the late 1980s, GEO had the necessary systems and expertise in place. The company's ability to repair and factory reset second-hand PS5 consoles allowed them to offer rentals at significantly lower prices than competitors, who charged between 4,500 to 8,900 yen per month.

The timing of GEO's PS5 rental service launch on February 28 was strategic, coinciding 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 specs, the PS5 emerged as the preferred platform despite its high cost.

Sakai emphasized that GEO prioritized launching the rental service in time for Monster Hunter Wilds, recognizing its potential as one of the year's biggest titles. This aligns with GEO's long-standing business philosophy of allowing customers to try expensive products at a lower cost, a strategy that dates back to the 1980s when renting movies was a more affordable alternative to purchasing expensive videotapes or laserdiscs.

However, while renting a PS5 might seem cost-effective at first glance, additional expenses such as game rentals or purchases and a PlayStation Network (PSN) subscription for online play can add up. Additionally, GEO only offers one and two-week rental plans, with an extension fee of 500 yen per day, which could increase the overall cost of renting a PS5.