PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in popularity of renting a PS5 console can be attributed to a combination of factors including price hikes, the release of a highly anticipated game, and the strategic launch of a rental service by GEO Corporation.

In February, GEO Corporation, a chain with around 1,000 stores specializing in the rental and sale of movies, music, and games, introduced a PS5 rental service. The service offers rentals starting at just 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks. This initiative has proven to be a massive success, with rental rates at GEO's 400 participating stores reaching between 80% to 100%.

Yusuke Sakai, the manager overseeing GEO’s rental products, shared with ITMedia that the concept of renting out PS5 consoles emerged in the summer of 2024. This was a time when GEO noticed a decline in DVD and CD rentals, largely due to the increasing popularity of streaming services. At the same time, rumors circulated about potential PS5 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 voiced their frustration on Sony’s official X announcement, pointing out that nearly 80,000 yen was too steep for a console that was already four years old.

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View 26 ImagesGEO capitalized on this discontent by leveraging its existing rental infrastructure. Having been in the business of selling, repairing, and renting consoles, DVDs, CDs, and other electronics since the late 1980s, GEO had the necessary systems and expertise in place. The company's ability to repair and factory reset second-hand PS5s allowed it to offer rentals at significantly lower prices than its competitors, who typically charged between 4500 to 8900 yen per month. This affordability made trying out a PS5 more accessible, contributing to the spike in 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 limited to certain platforms, and with Xbox being less popular in Japan and the game requiring high PC specs, the PS5 emerged as the preferred option for many. Yet, the console's high price was a deterrent. Sakai noted that GEO prioritized launching the service in time for Monster Hunter Wilds, recognizing it as one of the year's biggest titles.

Sakai highlighted GEO's long-standing philosophy of allowing customers to experience expensive products at a more affordable price. He drew parallels to the 1980s, when GEO made it possible to rent movies that cost 15,000 to 20,000 yen to buy, for just around 1,000 yen a night. Today, with the PS5 priced at nearly 80,000 yen, renting the console becomes a more appealing option for many, including parents and students who find the purchase price prohibitive.

However, potential renters should be aware that the cost of renting a PS5 can add up when considering additional expenses such as game rentals or purchases and the need for a PSN subscription for online play. Additionally, GEO only offers one and two-week rental plans, with an extra charge of 500 yen per day for extended rentals.