The recent surge in PS5 console rentals in Japan is driven by a combination of factors, including price hikes, the release of a highly anticipated game series, and the strategic launch of a new rental service by GEO Corporation. In February, GEO, a chain with approximately 1,000 stores specializing in renting and selling movies, music, and games, introduced a PS5 rental service. This initiative has proven highly successful, with rental rates reaching 80% to 100% at the 400 stores offering this service.
The idea to rent out PS5 consoles emerged in the summer of 2024, as GEO faced declining DVD and CD rentals due to the increasing popularity of streaming services. At the same time, rumors of impending PS5 price increases due to unfavorable exchange rates began circulating. On September 2, 2024, Sony confirmed these rumors by raising 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 ($477) to 79,980 yen ($569). This significant price hike sparked widespread dissatisfaction among Japanese consumers, many of whom voiced their concerns on Sony's official X announcement, citing the high cost of the nearly four-year-old console.
GEO's Yusuke Sakai, the manager responsible for the chain's rental products, explained that the company leveraged its existing rental infrastructure and expertise in handling second-hand consoles to offer PS5 rentals at competitive prices. Starting at just 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks, GEO's rates were significantly lower than other rental services in Japan, which typically charged between 4500 to 8900 yen per month. This affordability likely played a crucial role in the sudden increase in PS5 rentals.
The timing of GEO's PS5 rental service launch on February 28 coincided perfectly with the release of Capcom's Monster Hunter Wilds. Given the series' strong popularity in Japan and the limited platform availability of the new game, many players were left with few options. Xbox's limited market presence in Japan and the high PC specifications required for Monster Hunter Wilds made the PS5 the most viable choice for many, despite its high cost. Sakai noted that GEO prioritized setting up the service in time for the game's launch, recognizing its potential to drive demand.
GEO's rental service reflects the company's longstanding philosophy of making expensive products more accessible through rentals. This approach harks back to the 1980s when GEO made it possible for customers to rent movies for around 1,000 yen a night, rather than purchasing them at a much higher price. Today, with a PS5 costing 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 can be debated when considering additional expenses such as game rentals or purchases and the need for a PSN subscription for online play. Additionally, GEO's rental plans are limited to one or two weeks, with an extra charge of 500 yen per day for extended periods.
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