PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in popularity of renting PS5 consoles can be attributed to a combination of factors including console price hikes, the launch of a highly anticipated game, and the introduction of a well-timed rental service by a major retailer.

In February, Japan's GEO Corporation, a chain with around 1,000 stores specializing in renting and selling movies, music, and games, launched a service allowing customers to rent PS5 consoles. The rental prices are notably affordable, starting at 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks. This service has proven to be highly successful, with between 80% to 100% of PS5 consoles being rented out at the 400 stores offering this service.

GEO's manager in charge of rental products, Yusuke Sakai, shared with ITMedia that the idea to rent out PS5 consoles emerged in the summer of 2024. At the time, the company's DVD and CD rental business was declining due to the rise of streaming services. Meanwhile, rumors of an impending PS5 price increase due to weak exchange rates were 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 (approximately $477) to 79,980 yen (approximately $569). This price hike was met with widespread dissatisfaction among Japanese consumers, many of whom voiced their concerns on Sony's official X announcement, stating that nearly 80,000 yen was too expensive for a four-year-old console.

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GEO's existing rental infrastructure and expertise in handling second-hand consoles enabled the company to offer these rentals at much lower prices than competitors, who were charging between 4500 to 8900 yen per month. This affordability likely played a significant role in the sudden increase in PS5 rentals.

The timing of GEO's PS5 rental service launch on February 28 was impeccable, aligning perfectly with the release of "Monster Hunter Wilds." The Monster Hunter series by Capcom has a strong following in Japan, and the latest installment's limited platform availability posed a challenge for many fans. Given the low popularity of Xbox in Japan and the high PC specifications required for "Monster Hunter Wilds," the PS5 became the preferred choice for many, despite its high cost.

Sakai emphasized that GEO prioritized setting up the service in time for the launch of "Monster Hunter Wilds," recognizing its potential to be one of the year's biggest titles. This move aligns with GEO's long-standing philosophy of allowing customers to try out expensive products at a fraction of the cost, a practice that dates back to the 1980s when the company offered affordable rentals of movies on videotape and laserdisc.

However, while renting a PS5 may seem cost-effective at first glance, additional expenses such as renting or buying games and subscribing to PSN for online play can add up. Moreover, GEO's rental plans are limited to one and two weeks, with an additional charge of 500 yen per day for extended rentals.