PS5 Console Rentals Surge in Japan: Here's Why

The surge in PS5 console rentals in Japan can be attributed to a combination of economic factors, a highly anticipated game release, and a strategic move by a major retailer. In February, Japan's GEO Corporation introduced a PS5 rental service across its 400 stores, offering rentals starting at just 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks. This initiative has proven immensely popular, with rental rates reaching between 80% to 100% capacity.

GEO's decision to launch this service was influenced by a decline in their traditional DVD and CD rental business, exacerbated by the rise of streaming services. The idea to rent out PS5s emerged in the summer of 2024, as the company sought new avenues to leverage its established rental infrastructure. This move was timely, as Sony announced a significant price increase for the PS5 in Japan on September 2, 2024, raising the cost of the 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). The price hike was met with widespread dissatisfaction among consumers, making GEO's affordable rental option even more appealing.

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The launch of GEO's PS5 rental service coincided perfectly with the release of "Monster Hunter Wilds" on February 28. This game, part of Capcom's highly popular Monster Hunter series, was a significant draw for gamers in Japan. With limited platform availability and high PC specs, the PS5 became the preferred choice for many, despite its high cost. GEO's rental service provided an affordable way for fans to experience the latest installment without the burden of purchasing the console outright.

GEO's ability to offer such competitive rental prices stems from its existing infrastructure and expertise in selling, repairing, and renting electronics. The company's staff can efficiently refurbish and reset second-hand PS5s, reducing operational costs and allowing for lower rental fees compared to other services, which typically charge between 4500 to 8900 yen per month.

The philosophy behind GEO's rental service harkens back to its origins in the 1980s, when it made expensive media like videotapes and laserdiscs accessible through rentals. Today, with the PS5's price nearing 80,000 yen, renting offers a more budget-friendly alternative for many, including parents and students.

However, potential renters should consider additional costs such as game rentals or purchases and the necessity of a PSN subscription for online play. GEO's rental plans are limited to one or two weeks, with an additional daily fee of 500 yen for extensions, which could affect the overall affordability of the service.