PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the trend of renting PlayStation 5 (PS5) consoles has surged in popularity recently, driven by a combination of factors including price increases, the release of a highly anticipated game, and a strategic move by a major retailer.

In February, Japan's GEO Corporation, which operates a network of approximately 1,000 stores specializing in renting and selling movies, music, and games, introduced a PS5 rental service. This service starts at a competitive rate of 980 yen (approximately $7) for one week and 1,780 yen (approximately $12.50) for two weeks. The initiative has proven extremely successful, with rental rates reaching between 80% to 100% at the 400 stores participating in the program.

Yusuke Sakai, the manager overseeing GEO's rental products, shared with ITMedia that the idea to rent out PS5 consoles emerged in the summer of 2024. This was a response to the declining demand for DVD and CD rentals, exacerbated by the growing preference for streaming services.

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View 26 ImagesAt the time, although the PS5 was no longer in short supply, rumors were circulating about potential price hikes 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 sparked significant backlash among Japanese consumers, many of whom expressed frustration over the new cost of the four-year-old console on Sony's official X announcement.

Sakai explained that this dissatisfaction prompted GEO to consider utilizing their existing rental infrastructure for PS5 consoles. With a history of selling, repairing, and renting various electronics since the late 1980s, GEO was well-positioned to implement this new service. Their ability to repair and reset second-hand consoles in-house allowed them to offer rentals at significantly lower prices compared to other companies, which typically charged between 4,500 to 8,900 yen per month.

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, developed by Capcom, has a robust following in Japan. However, the exclusivity of Monster Hunter Wilds to limited platforms, combined with the high PC specifications required and the relatively low popularity of Xbox in Japan, made the PS5 the preferred choice for many gamers. The steep price of the console, however, posed a barrier, which GEO's affordable rental service effectively mitigated.

Sakai emphasized that launching the service in time for Monster Hunter Wilds was a priority, reflecting GEO's commitment to making expensive products accessible at a lower cost. This approach echoes their past strategy of offering movie rentals at a fraction of the cost of purchasing tapes or laserdiscs in the 1980s. Today, with the PS5 priced at nearly 80,000 yen, renting becomes a more feasible option for many, including parents and students.

However, the overall cost of renting a PS5 might not be as economical as it seems at first glance. Additional expenses such as game rentals or purchases, and the necessity of a PSN subscription for online play, can add up. Furthermore, GEO's rental plans are limited to one or two weeks, with an additional 500 yen charged per day for extended rentals.