In recent months, Japan has seen a notable surge in the popularity of renting PS5 consoles, a trend influenced by a combination of factors including console price increases, the release of a highly anticipated game, and a strategic move by a major retailer.
GEO Corporation, a prominent Japanese chain with approximately 1,000 stores specializing in the rental and sale of movies, music, and games, introduced a PS5 rental service in February. This service allows customers to rent a PS5 for as low as 980 yen (approximately $7) for one week, or 1,780 yen (approximately $12.50) for two weeks. The introduction of this service has proven to be highly successful, 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 out PS5 consoles was conceived in the summer of 2024. This decision came as GEO's traditional DVD and CD rental business was experiencing a decline, largely due to the growing dominance of streaming services.
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At the time, although the supply of PS5 consoles had stabilized, rumors circulated about impending price hikes in Japan due to unfavorable exchange rates. 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 domestic price increase was met with significant backlash, as evident from the numerous complaints on Sony’s official X announcement, with many users expressing that nearly 80,000 yen was excessively high for a four-year-old console.
Sakai explained that the price hike prompted GEO to explore the possibility of integrating PS5 consoles into their existing rental system. With a history dating back to the late 1980s, GEO already possessed a robust rental infrastructure both in-store and online. Additionally, their experience with buying, selling, and repairing second-hand consoles allowed them to offer PS5 rentals at significantly lower prices than competitors, who typically charged between 4,500 to 8,900 yen per month. This affordability has likely played a key role in the sudden increase in PS5 rentals, making it feasible for individuals to try the console for a short period without a substantial financial commitment.
The timing of GEO's PS5 rental service launch on February 28 was strategic, aligning perfectly with the release of Monster Hunter Wilds. Capcom's Monster Hunter series is immensely popular in Japan, and the limited platform availability of Monster Hunter Wilds raised concerns among fans. 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 cost.
Sakai noted that the anticipation around Monster Hunter Wilds was a significant factor in prioritizing the launch of the rental service. He emphasized GEO's long-standing philosophy of enabling customers to experience expensive products at a lower cost, drawing parallels to the 1980s when renting a movie was a more affordable option than purchasing one.
However, the cost-effectiveness of renting a PS5 may be less clear when considering additional expenses. Renting or buying games and the necessity of a PSN subscription for online play add to the overall cost. Moreover, GEO's rental plans are limited to one or two weeks, with an additional charge of 500 yen per day for extended rentals.
