PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the trend of renting PlayStation 5 (PS5) consoles has seen a significant surge in popularity in recent months. This shift towards renting rather than buying Sony's latest gaming hardware can be attributed to a combination of factors, including price increases, the release of a highly anticipated game series, and the strategic introduction of a rental service by a major Japanese retailer.

In February, GEO Corporation, a well-established chain with approximately 1,000 stores across Japan that specializes in renting and selling movies, music, and games, launched a PS5 rental service. The service offers rentals starting at an affordable 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. This initiative has proven to be a resounding success, 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 was conceived in the summer of 2024. This was a period when GEO was experiencing a decline in DVD and CD rentals due to the growing dominance of streaming services. At the same time, rumors were circulating about potential PS5 price hikes in Japan, driven by unfavorable exchange rates. These rumors materialized on September 2, 2024, when Sony announced a price increase for the PS5 Digital Edition from 59,980 yen (approximately $427) to 72,980 yen (approximately $520), and for the disc drive version from 66,980 yen (approximately $477) to 79,980 yen (approximately $569). This move 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 now four-year-old console.

In response to these developments, GEO saw an opportunity to leverage its existing rental infrastructure. With a history dating back to the late 1980s, GEO has been involved in selling, repairing, and renting various electronics, including consoles. The company's expertise in handling second-hand consoles allowed it to offer PS5 rentals at significantly lower prices than its competitors, who typically charged between 4,500 to 8,900 yen per month. GEO's competitive pricing has made it more accessible for individuals to try out the PS5 for a short period, contributing to the sudden increase in rental demand.

The timing of GEO's PS5 rental service launch on February 28 was strategically aligned with the release of "Monster Hunter Wilds," a highly anticipated game from Capcom's popular Monster Hunter series. Given the game's limited platform availability and the high PC specifications required, many Japanese gamers viewed the PS5 as the most viable option, despite its high cost. Sakai emphasized that GEO prioritized setting up the rental service in time for the game's launch, recognizing its potential to drive demand.

GEO's approach to renting PS5 consoles reflects its long-standing philosophy of making expensive products more accessible through rentals. This strategy harks back to the 1980s when GEO enabled customers to rent movies for around 1,000 yen a night, a fraction of the cost of purchasing a videotape or laserdisc. 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 may be less clear when considering additional expenses such as game rentals or purchases and the need for a PlayStation Network (PSN) subscription for online play. Furthermore, GEO's current 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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