PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the sudden surge in renting PS5 consoles can be attributed to a combination of factors including price hikes, the popularity of a major game series, and the introduction of a timely rental service by GEO Corporation.

In February, GEO Corporation, a well-established chain with around 1,000 stores specializing in renting and selling entertainment products, began offering PS5 rentals. With rental prices starting at an affordable 980 yen (approximately $7) for a week and 1780 yen (approximately $12.50) for two weeks, the service has seen tremendous success, with rental rates reaching between 80% to 100% at the 400 participating stores.

This innovative move by GEO was spurred by declining DVD and CD rentals due to the rise of streaming services, as well as the looming price increase of PS5 consoles in Japan. In September 2024, Sony announced a significant price hike, 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). This increase, attributed to weak exchange rates, was met with widespread dissatisfaction among Japanese consumers, many of whom found the new prices, nearing 80,000 yen, excessively high for a four-year-old console.

GEO capitalized on this discontent by leveraging its existing rental infrastructure and expertise in handling second-hand electronics. The company’s long history of selling, repairing, and renting consoles allowed it to offer PS5 rentals at significantly lower prices compared to competitors, who charged between 4500 to 8900 yen per month. This affordability has enabled even casual gamers to try out the PS5 without a substantial financial commitment.

The timing of GEO’s PS5 rental service launch on February 28 was strategic, coinciding with the release of Capcom’s highly anticipated game, Monster Hunter Wilds. The Monster Hunter series enjoys immense popularity in Japan, and the limited platform availability of Monster Hunter Wilds—coupled with Xbox’s lesser popularity in the region and high PC specifications—made the PS5 a more attractive option for many gamers. However, the console’s high cost was a barrier, which GEO’s rental service effectively addressed.

GEO’s approach aligns with its philosophy of allowing customers to experience expensive products at a lower cost, a strategy it has employed since the 1980s with movie rentals. Today, with the PS5’s price making it a significant investment for many, especially parents and students, renting becomes a more appealing option.

However, potential renters should be aware of additional costs that may arise, such as renting or purchasing games and the need for a PSN subscription for online play. Additionally, GEO’s rental plans are currently limited to one or two weeks, with an extension fee of 500 yen per day, which could affect the overall cost-effectiveness of renting.

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