Here’s Why PS5 Console Rentals Are Booming in Japan

In Japan, the trend of renting PlayStation 5 (PS5) consoles has seen a significant surge in popularity in recent months. Several factors contribute to this shift from buying to renting Sony's current-generation hardware, including price increases, the launch of a highly anticipated game series, and the strategic introduction of a rental service by a major Japanese retailer.

In February, GEO Corporation, a chain operating around 1,000 stores across Japan that specializes in renting and selling movies, music, and games, launched a PS5 rental service. The service offers rentals starting at an affordable 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. This initiative has proven extremely successful, with 80% to 100% of PS5 consoles rented out at the 400 stores offering the service.

The decision to rent out PS5 consoles was influenced by a decline in GEO's DVD and CD rentals due to the increasing popularity of streaming services, as noted by Yusuke Sakai, the manager in charge of rental products at GEO, in an interview with ITMedia. The idea was conceived in the summer of 2024, a time when PS5s were no longer in short supply but were rumored to face a price hike 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 price increase was met with significant backlash from Japanese consumers, many of whom expressed their dissatisfaction on Sony's official X announcement, citing the high cost of the now four-year-old console.

GEO saw an opportunity in this situation. Leveraging its existing rental infrastructure and expertise in handling second-hand consoles, GEO was able to offer PS5 rentals at a much lower price than competitors, who typically charged between 4,500 and 8,900 yen per month. This affordability made it easier for consumers to try out the PS5 for a short period, contributing to the sudden increase in rental demand.

The timing of GEO's PS5 rental service launch on February 28 was strategic, aligning perfectly with the release of Capcom's Monster Hunter Wilds. The Monster Hunter series has a strong following in Japan, and the limited platform availability of Monster Hunter Wilds, combined with the high PC specifications required and the relative unpopularity of Xbox in Japan, made the PS5 the preferred choice for many gamers. However, the console's high price posed a barrier, which GEO's rental service effectively addressed.

Sakai emphasized that the launch of Monster Hunter Wilds was a key factor in GEO's decision to prioritize the timely setup of the PS5 rental service. He also highlighted GEO's long-standing philosophy of allowing customers to experience expensive products at a lower cost, drawing parallels to the 1980s when GEO made renting movies affordable despite their high purchase prices.

While renting a PS5 may seem cost-effective at first glance, additional expenses such as renting or buying games and subscribing to PlayStation Network (PSN) for online play should be considered. Moreover, GEO's rental plans are limited to one or two weeks, with an additional charge of 500 yen per day for extended rentals.

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