In Japan, the trend of renting PS5 consoles has seen a notable surge in popularity in recent months. This phenomenon is driven by a combination of factors including console price hikes, the allure of a highly popular game series, and the strategic launch of a new rental service by a major Japanese retailer.
In February, Japan's GEO Corporation, a chain with approximately 1,000 stores that deal in renting and selling movies, music, and games, introduced a PS5 rental service. This service offers rentals starting at an affordable 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks. The success of this initiative is evident, with rental rates at GEO's 400 participating stores reaching between 80% to 100% capacity.
According to Yusuke Sakai, the manager overseeing GEO's rental products, the concept of renting PS5 consoles was conceived in the summer of 2024. This was a response to the declining demand for DVD and CD rentals, which had been overshadowed by the rise of streaming services.
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At the time, although PS5s were no longer facing supply shortages, rumors circulated about impending price increases in Japan due to unfavorable exchange rates. 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 significant backlash from Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement, citing the high cost of the four-year-old console.
GEO saw an opportunity in this scenario. Sakai explained, "At this point, we began to consider whether we could rent out PS5 consoles using our existing rental system." With a history dating back to the late 1980s, GEO had already established robust in-store and online rental systems, as well as a team skilled in repairing and resetting second-hand consoles. This infrastructure allowed GEO to offer PS5 rentals at significantly lower prices than competitors, who typically charged between 4500 to 8900 yen per month. The affordability of GEO's service likely played a crucial role in the sudden increase in PS5 rentals.
The timing of GEO's PS5 rental service launch on February 28 was impeccable, aligning with the release of Monster Hunter Wilds. Capcom's Monster Hunter series has a strong following in Japan, and the limited platform availability of Monster Hunter Wilds posed a challenge for many fans. With Xbox less popular in Japan and the game's high PC requirements, the PS5 emerged as the preferred choice for many, despite its high cost.
Sakai noted, "We knew that Monster Hunter Wilds was going to be one of the biggest titles of the year, so we made it our top priority to get the service set up in time for that." This strategic move capitalized on the game's popularity and the demand for accessible PS5 access.
Sakai further emphasized that GEO's PS5 rental service aligns with the company's long-standing philosophy of allowing customers to try out expensive products at a lower cost. He reflected on how, in the 1980s, renting a movie was a more affordable alternative to purchasing a costly videotape or laserdisc. Today, with a PS5 priced at nearly 80,000 yen, renting becomes an attractive option for many, including parents and students.
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 PSN subscription for online play. Additionally, GEO's current rental plans are limited to one or two weeks, with an extension fee of 500 yen per day.
