In recent months, Japan has seen a surge in the popularity of renting PS5 consoles, driven by a combination of factors including price increases, the release of a highly anticipated game, and the introduction of a well-timed rental service by a major retailer.
In February, GEO Corporation, a chain with approximately 1,000 stores across Japan that specializes in renting and selling movies, music, and games, launched a PS5 rental service. The rental prices are notably affordable, starting at 980 yen (about $7) for a week and 1,780 yen (about $12.50) for two weeks. This initiative has proven extremely successful, with rental rates at GEO's 400 participating stores reaching between 80% and 100%.
Yusuke Sakai, the manager overseeing GEO's rental products, shared with ITMedia that the idea to rent out 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.
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Simultaneously, rumors of an impending PS5 price hike in Japan due to unfavorable exchange rates began circulating. On September 2, 2024, Sony confirmed these rumors by increasing 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 adjustment sparked significant discontent among Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement, arguing that nearly 80,000 yen was excessive for a console that had been on the market for four years.
Sakai explained that the price increase prompted GEO to explore the feasibility of integrating PS5 rentals into their existing system. As a company with a long history of selling, repairing, and renting consoles, DVDs, CDs, and other electronics since the late 1980s, GEO was well-equipped to offer this service. Their established rental infrastructure and staff capable of repairing and resetting consoles enabled them to keep costs low, making their service more affordable than competitors who charged between 4,500 and 8,900 yen per month. This affordability has likely contributed to the sharp increase in PS5 rentals.
The timing of GEO's service launch on February 28 was strategic, aligning perfectly with the release of "Monster Hunter Wilds." The Monster Hunter series, developed by Capcom, has a robust following in Japan. However, the exclusive availability of "Monster Hunter Wilds" on platforms with high system requirements, coupled with Xbox’s lesser popularity in the region, made the PS5 a more appealing option despite its high cost.
Sakai emphasized the importance of launching the service in time for "Monster Hunter Wilds," stating, "We knew that Monster Hunter Wilds was going to be one of the biggest titles of the year, so we made it our top priority to get the service set up in time for that."
The rental service aligns with GEO's longstanding approach of allowing customers to experience expensive products at a fraction of the purchase cost. Sakai drew parallels to the 1980s when renting movies was a more affordable alternative to buying expensive video tapes and laserdiscs. Today, with a PS5 costing nearly 80,000 yen, renting becomes an attractive option for parents and students who might find the full purchase price prohibitive.
However, the overall cost of renting a PS5 may not be as low as it seems when considering additional expenses like game rentals or purchases and the necessity of a PSN subscription for online play. Moreover, GEO currently offers only one-week and two-week rental plans, with an additional 500 yen per day for extended rentals.
