In Japan, the sudden surge in popularity of renting PS5 consoles can be attributed to a mix of factors including price hikes, the release of a highly anticipated game, and the strategic launch of a rental service by GEO Corporation. Starting in February, GEO, a chain with about 1,000 stores across Japan that deals in renting and selling movies, music, and games, introduced an affordable PS5 rental service. The rental prices are set at 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks, making it a cost-effective option for many. This service has proven immensely popular, with 80% to 100% of the PS5 consoles being rented out at the 400 participating stores.
According to Yusuke Sakai, GEO's manager in charge of rental products, the decision to rent out PS5 consoles was influenced by the declining demand for DVD and CD rentals due to the rise of streaming services. This shift was observed in the summer of 2024. Additionally, rumors of an impending PS5 price increase due to unfavorable exchange rates were confirmed on September 2, 2024, when Sony raised the price 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 price hike led to widespread dissatisfaction among Japanese consumers, who found the new prices, nearing 80,000 yen, excessively high for a console that was already four years old.
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GEO's existing rental infrastructure, established since the late 1980s, allowed for a smooth transition into offering PS5 rentals. With expertise in selling, repairing, and resetting second-hand consoles, GEO could keep costs low, offering prices significantly below those of competitors, who typically charged between 4,500 to 8,900 yen per month. This affordability likely played a significant role in the sudden increase in PS5 rentals.
The timing of GEO's PS5 rental service launch on February 28 was strategic, coinciding with the release of "Monster Hunter Wilds," a highly anticipated game from Capcom's popular Monster Hunter series. Given the game's limited platform availability and the high PC specs required, many Japanese gamers saw the PS5 as the most viable option despite its high cost. Sakai noted that ensuring the service was ready for the game's launch was a top priority for GEO.
GEO's rental service aligns with the company's long-standing philosophy of making expensive products accessible through rentals. Historically, GEO made it possible for customers to rent movies for about 1,000 yen a night, a stark contrast to the 15,000 to 20,000 yen it would cost to buy a single videotape or laserdisc. Today, with the PS5 priced at nearly 80,000 yen, renting becomes a more appealing option for families and students.
However, the overall cost of renting a PS5 might not be as low as it seems. Additional expenses such as game rentals or purchases and the necessity of a PSN subscription for online play can add up. Furthermore, GEO's rental plans are limited to one and two weeks, with an additional daily fee of 500 yen for extended periods.
