PS5 Console Rentals Surge in Japan: Here's Why

In recent months, the trend of renting PlayStation 5 (PS5) consoles has seen a significant surge in Japan. This phenomenon can be attributed to a combination of factors including increased console prices, the launch of a highly anticipated game series, and the introduction of a strategic rental service by a key Japanese retailer.

In February, Japan’s GEO Corporation, a chain with approximately 1,000 stores specializing in the rental and sale of movies, music, and games, introduced a PS5 rental service. This service allows customers to rent a PS5 starting at a very affordable rate of 980 yen (approximately $7) for a week, and 1,780 yen (approximately $12.50) for two weeks. The service has been remarkably successful, with rental rates at GEO's 400 participating stores reaching between 80% to 100% capacity.

Yusuke Sakai, the manager in charge of GEO's rental products, told ITMedia that the idea to rent out PS5 consoles emerged in the summer of 2024. This decision came at a time when GEO's DVD and CD rentals were declining due to the growing popularity of streaming services. Additionally, the looming threat of a PS5 price increase in Japan due to unfavorable exchange rates prompted GEO to consider this new venture.

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On September 2, 2024, Sony confirmed the price hike, increasing the cost 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 adjustment led to widespread dissatisfaction among Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement, citing the high cost of the four-year-old console.

Sakai explained that GEO considered utilizing its existing rental system to offer PS5 rentals. With a history dating back to the late 1980s of selling, repairing, and renting various electronics, GEO had the infrastructure and expertise to make this service viable. The company's ability to repair and factory reset second-hand consoles allowed GEO to offer PS5 rentals at significantly lower prices compared to other Japanese companies, which typically charged between 4,500 to 8,900 yen per month. GEO’s competitive pricing likely encouraged more people to try out the PS5 for a short period, contributing to the sudden increase in demand for rentals.

GEO’s PS5 rental service launched on February 28, strategically timed to coincide with the release of Monster Hunter Wilds. The Monster Hunter series, developed by Capcom, has a strong following in Japan. However, Monster Hunter Wilds was only available on a limited number of platforms, leaving many Japanese gamers concerned about how they would access the latest installment. The lack of popularity of Xbox in Japan, combined with the high PC specifications required for Monster Hunter Wilds, made the PS5 a more appealing choice despite its high cost.

Sakai noted that GEO made it a priority to have the rental service ready for the launch of Monster Hunter Wilds, recognizing its potential as one of the year's biggest titles. He also highlighted that GEO's rental philosophy aligns with its long-standing mission to make expensive products more accessible to consumers, similar to how it once made movie rentals affordable in the 1980s when buying a single videotape or laserdisc was prohibitively expensive.

However, the cost-effectiveness of renting a PS5 may be less clear when considering additional expenses such as renting or purchasing games and the necessity of a PSN subscription for online play. Moreover, GEO's current rental plans are limited to one or two weeks, with an additional daily charge of 500 yen for extended rentals.