In Japan, the sudden surge in renting PS5 consoles can be attributed to a combination of factors, including price hikes, the launch of a popular game series, and the introduction of a well-timed rental service by GEO Corporation.
In February, GEO Corporation, a chain with approximately 1,000 stores across Japan that deals in renting and selling movies, music, and games, launched a service allowing customers to rent PS5 consoles. The rental prices start at an affordable 980 yen (around $7) for a week and 1,780 yen (around $12.50) for two weeks. This initiative has proven extremely successful, with rental rates at GEO's 400 participating stores reaching between 80% to 100%.
Yusuke Sakai, the manager overseeing GEO's rental products, told ITMedia that the concept of renting out PS5 consoles was conceived in the summer of 2024. This idea came at a time when GEO was experiencing a decline in DVD and CD rentals due to the growing popularity of streaming services.
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Amidst this backdrop, rumors of PS5 price increases in Japan due to weak exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by raising the price of the Digital Edition from 59,980 yen (about $427) to 72,980 yen (about $520), and the disc drive version from 66,980 yen (about $477) to 79,980 yen (about $569). This price hike led to widespread dissatisfaction among Japanese users, many of whom expressed their frustration on Sony's official X announcement, citing the nearly 80,000 yen price as too steep for a console that was already four years old.
Sakai mentioned that GEO began exploring the possibility of integrating PS5 consoles into their existing rental system. With decades of experience in selling, repairing, and renting electronics since the late 1980s, GEO was well-equipped to handle this new venture. The company's ability to buy, sell, and refurbish second-hand consoles allowed them to offer PS5 rentals at significantly lower prices than competitors, who charged between 4,500 to 8,900 yen per month. GEO's competitive pricing likely encouraged more people to try out the PS5 for a short period.
GEO's PS5 rental service launched on February 28, perfectly aligning with the release of Monster Hunter Wilds. The Monster Hunter series, developed by Capcom, has a strong following in Japan. However, the limited platform availability of Monster Hunter Wilds, combined with the relative unpopularity of Xbox in Japan and the high PC specs required, made the PS5 the preferred choice for many gamers—despite its high cost.
Sakai noted that the timely launch of the rental service was strategically planned to coincide with Monster Hunter Wilds, recognizing the game's potential as one of the year's biggest titles. He emphasized GEO's long-standing philosophy of allowing customers to try expensive products at a lower cost, drawing a parallel to the 1980s when renting movies was a more affordable option than purchasing them.
However, the cost-effectiveness of renting a PS5 may be less clear when considering additional expenses such as game rentals or purchases and the need for a PSN subscription for online play. Additionally, GEO's rental plans are limited to one or two weeks, with an extra 500 yen per day charged for extensions.
