PS5 Console Rentals Surge in Japan: Here's Why

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

In February, GEO Corporation, a prominent chain with approximately 1,000 stores specializing in renting and selling movies, music, and games, introduced an innovative service allowing customers to rent PS5 consoles. With rental prices starting at an affordable 980 yen (about $7) for one week and 1,780 yen (about $12.50) for two weeks, the service has been a resounding success. At the 400 stores offering this option, between 80% and 100% of the PS5 consoles are consistently rented out.

Yusuke Sakai, the manager overseeing GEO's rental products, shared with ITMedia that the concept of renting out PS5 consoles was conceived in the summer of 2024. This was a period when GEO was facing declining DVD and CD rentals due to the increasing dominance of streaming services.

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At that time, although the supply of PS5 consoles had stabilized, rumors circulated about 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 significant price hike was met with widespread dissatisfaction among Japanese consumers, who expressed their frustration on Sony’s official X announcement, deeming nearly 80,000 yen too steep for a four-year-old console.

In response to this situation, GEO saw an opportunity. "At this point, we began to consider whether we could rent out PS5 consoles using our existing rental system," Sakai explained. GEO, with its longstanding experience in selling, repairing, and renting electronics since the late 1980s, already had robust in-store and online rental systems. Additionally, their staff were adept at repairing and resetting second-hand consoles, which helped keep costs down. This allowed GEO to offer PS5 rentals at prices significantly lower than competitors, who charged between 4,500 and 8,900 yen per month. The affordability of GEO’s service likely played a crucial role in the sudden increase in PS5 rentals.

The timing of GEO's PS5 rental service launch on February 28 was impeccable, coinciding with the release of "Monster Hunter Wilds." Capcom’s Monster Hunter series has a robust following in Japan, and the limited platform availability of "Monster Hunter Wilds" raised concerns among fans about how to access the latest game. With Xbox less popular in Japan and the game's high PC requirements, the PS5 became the preferred choice for many, despite its high cost.

"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," Sakai noted.

Sakai further emphasized that GEO's PS5 rental service aligns with the company's long-standing philosophy of allowing customers to try expensive products at a more affordable price. He reflected on how in the 1980s, renting a movie was a much more cost-effective option than buying a videotape or laserdisc, which could cost between 15,000 and 20,000 yen. Today, with a PS5 priced at nearly 80,000 yen, renting becomes an attractive option for parents and students alike.

However, the cost-effectiveness of renting a PS5 may be less clear when considering additional expenses such as renting or purchasing games and the need for a PSN subscription for online play. Moreover, GEO's current rental plans are limited to one or two weeks, with an additional charge of 500 yen per day for extended rentals.