PS5 Console Rentals Surge in Japan: Here's Why

In recent months, the trend of renting PS5 consoles in Japan has seen a significant surge in popularity. This shift towards renting over buying can be attributed to a combination of factors, including the console's price increase, the release of a highly anticipated game series, and the strategic introduction of a new rental service by a major Japanese retailer.

In February, GEO Corporation, a chain operating around 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 (approximately $7) for one week and 1,780 yen (approximately $12.50) for two weeks. This service has proven highly successful, with rental rates at GEO's 400 participating stores reaching between 80% to 100%.

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. At the time, GEO was experiencing a decline in DVD and CD rentals due to the increasing dominance of streaming services. However, the PS5 market was experiencing a different dynamic. Although supply constraints had eased, rumors of an impending price hike 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, many of whom expressed their frustration on Sony's official X announcement, citing the high cost of a console that was already four years old.

GEO saw an opportunity to leverage its existing rental infrastructure, which included both in-store and online systems, as well as its staff's expertise in repairing and resetting second-hand consoles. This allowed GEO to offer PS5 rentals at significantly lower prices than its competitors, who had previously charged between 4,500 to 8,900 yen per month. The affordability of GEO's rental service made it easier for people to try out the PS5 for a short period, likely contributing to the sudden increase in rentals.

The timing of GEO's PS5 rental service launch on February 28 was particularly strategic, as it coincided with the release of "Monster Hunter Wilds." The Monster Hunter series by Capcom has always been immensely popular in Japan, and the limited platform availability of "Monster Hunter Wilds" posed a challenge for many fans. With Xbox being less popular in Japan and the game's high PC requirements, the PS5 emerged as the preferred option despite its high cost. Sakai noted that GEO prioritized getting the rental service ready for the game's launch, recognizing its potential as one of the year's biggest titles.

GEO's approach to renting out PS5 consoles aligns with its long-standing philosophy of making expensive products more accessible. Sakai reflected on how, in the 1980s, GEO made it possible for customers to rent movies for around 1,000 yen a night, when purchasing a single movie on videotape or laserdisc would cost between 15,000 to 20,000 yen. Today, with the PS5 priced at nearly 80,000 yen, renting the console becomes an attractive option for parents and students who might find the purchase price prohibitive.

However, it's worth noting that the overall cost of renting a PS5 might not be as low as it seems at first glance. Additional expenses, such as renting or buying games and subscribing to PSN for online play, can add up. Furthermore, GEO's rental plans are currently limited to one or two weeks, with an additional fee of 500 yen per day for any extensions.

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