PS5 Console Rentals Surge in Japan: Here's Why

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

In February, GEO Corporation, a well-established chain with around 1,000 stores across Japan that deals in renting and selling movies, music, and games, introduced a PS5 rental service. The rental prices are notably affordable, starting at 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks. This initiative has proven to be highly successful, with rental rates reaching between 80% to 100% at the 400 stores offering the service.

Yusuke Sakai, the manager overseeing GEO's rental products, shared with ITMedia that the idea to rent out PS5 consoles was conceived in the summer of 2024. This decision was influenced by the declining demand for DVD and CD rentals due to the growing popularity of streaming services.

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View 26 ImagesAt that time, despite the PS5 no longer facing supply shortages, there were rumors of impending price increases in Japan due to unfavorable exchange rates. 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 ($477) to 79,980 yen ($569). This price hike was met with significant backlash from Japanese consumers, many of whom expressed their dissatisfaction on Sony's official X announcement, arguing that nearly 80,000 yen was an excessive price for a console that was already four years old.

Sakai explained that GEO saw an opportunity to utilize its existing rental infrastructure to offer PS5 rentals. With a history dating back to the late 1980s, GEO has been involved in selling, repairing, and renting various electronics, including consoles, DVDs, and CDs. The company's ability to repair and factory reset second-hand PS5s allowed them to offer the rental service at significantly lower prices than competitors, who typically charged between 4500 to 8900 yen per month. This competitive pricing likely encouraged more people to try out a PS5 for a short period, contributing to the spike in rentals.

GEO's PS5 rental service was strategically launched on February 28, coinciding with the release of Monster Hunter Wilds by Capcom. The Monster Hunter series has a strong following in Japan, and the limited platform availability of Monster Hunter Wilds posed a challenge for many players. Given Xbox's lesser popularity in Japan and the high PC specifications required for the game, the PS5 became the preferred choice for many, despite its high cost.

Sakai emphasized that launching the service in time for Monster Hunter Wilds was a priority, recognizing the game's anticipated popularity. He further elaborated on GEO's philosophy of making expensive products accessible at a lower cost, reflecting on how the company once made movies affordable to rent in the 1980s, when purchasing a single movie videotape or laserdisc was prohibitively expensive.

However, while renting a PS5 may seem cost-effective at first glance, additional expenses such as renting or buying games and subscribing to PSN for online play should be considered. Additionally, GEO's current rental plans are limited to one and two weeks, with an extension fee of 500 yen per day.