In Japan, the sudden surge in renting PS5 consoles can be attributed to a combination of factors including console price hikes, the popularity of a specific game series, and the timely launch of a new rental service by a major retailer.
In February, Japan's GEO Corporation, a chain with approximately 1,000 stores, introduced a PS5 rental service. This service offers affordable weekly and bi-weekly rental options starting at 980 yen (about $7) for a week and 1780 yen (about $12.50) for two weeks. The initiative has proven highly 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 concept of renting PS5 consoles emerged in the summer of 2024. This was a strategic move as GEO's traditional DVD and CD rental business was declining due to the rise of streaming services.
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At the time, although PS5 supply issues had been resolved, rumors of an impending price increase due to unfavorable exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by raising the price of the PS5 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 was met with significant backlash from Japanese consumers, many of whom expressed their frustration on Sony's official X announcement, citing the high cost of the four-year-old console.
Sakai noted that GEO began exploring the possibility of integrating PS5 rentals into their existing rental system. With a history dating back to the late 1980s, GEO has extensive experience in selling, repairing, and renting various electronics, including consoles. This expertise allowed them to offer PS5 rentals at significantly lower prices than competitors, who typically charged between 4500 to 8900 yen per month. GEO's competitive pricing likely played a crucial role in the sudden increase in PS5 rentals.
The timing of GEO's PS5 rental service launch on February 28 was strategic, aligning perfectly with the release of Capcom's Monster Hunter Wilds. The Monster Hunter series has a strong following in Japan, and the limited platform availability of Monster Hunter Wilds, coupled with the high PC specifications required and the relative unpopularity of Xbox in Japan, made the PS5 the preferred choice for many gamers. However, the console's high price was a barrier for some.
Sakai emphasized that launching the service in time for Monster Hunter Wilds was a top priority, recognizing the game's potential to drive demand. GEO's approach reflects its long-standing philosophy of making expensive products more accessible through rentals, a strategy that dates back to the 1980s when renting movies was a cost-effective alternative to purchasing them.
Despite the attractive rental prices, potential renters should consider additional costs 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 extension fee of 500 yen per day, which could impact the overall cost-effectiveness of renting a PS5.
