PS5 Console Rentals Surge in Japan: Here's Why

In recent months, the trend of renting PlayStation 5 (PS5) consoles has skyrocketed in Japan, driven by a mix of economic factors, gaming culture, and strategic business moves. Let's dive into the reasons behind this sudden surge in PS5 rentals.

The catalyst for this trend can be traced back to February when Japan's GEO Corporation, a chain with about 1,000 stores specializing in rentals and sales of movies, music, and games, launched a PS5 rental service. With rental prices starting at a budget-friendly 980 yen (approximately $7) for one week and 1,780 yen (approximately $12.50) for two weeks, the service has been a resounding success. At the 400 stores offering this service, between 80% to 100% of the available PS5 consoles are rented out. This high demand underscores the appeal of the rental option.

The idea to rent out PS5s was sparked in the summer of 2024, as GEO noticed a decline in its DVD and CD rentals due to the rise of streaming services. At that time, despite the PS5 no longer facing supply shortages, rumors swirled about potential price increases due to unfavorable exchange rates. These rumors became reality on September 2, 2024, when Sony announced a domestic price hike in Japan. The Digital Edition's price jumped from 59,980 yen (approximately $427) to 72,980 yen (approximately $520), while the disc drive version increased from 66,980 yen (approximately $477) to 79,980 yen (approximately $569). This significant increase led to widespread dissatisfaction among Japanese consumers, many of whom expressed frustration over the nearly 80,000 yen price tag for a console that had been on the market for four years.

Yusuke Sakai, the manager in charge of GEO's rental products, explained to ITMedia that the company saw an opportunity to leverage its existing rental infrastructure. GEO, with its history of selling, repairing, and renting various electronics since the late 1980s, already had the systems and expertise in place. This allowed them to offer PS5 rentals at significantly lower prices than their competitors, who charged between 4,500 to 8,900 yen per month. GEO's competitive pricing made it feasible for even the mildly curious to rent a PS5 for a short period, contributing to the sudden spike in rentals.

The timing of GEO's PS5 rental service launch on February 28 was impeccable, coinciding with the release of Capcom's "Monster Hunter Wilds." The Monster Hunter series has always been immensely popular in Japan, and the limited platform availability of "Monster Hunter Wilds" posed a challenge for fans. With Xbox less popular in Japan and the game's high PC specifications, the PS5 emerged as the preferred choice for many, despite its high cost. Sakai noted that GEO prioritized setting up the service in time for the game's launch, recognizing its potential as one of the year's biggest titles.

GEO's rental service aligns with the company's long-standing philosophy of making expensive products more accessible through rentals. In the 1980s, GEO made movies affordable by allowing rentals for around 1,000 yen a night, rather than purchasing a video tape or laserdisc for 15,000 to 20,000 yen. Today, with the PS5 priced at nearly 80,000 yen, renting becomes an attractive option for parents or students looking to enjoy the console without the hefty upfront cost.

However, it's worth noting that the total cost of renting a PS5 might not be as economical as it seems at first glance. Additional expenses such as renting or buying games and subscribing to PlayStation Network (PSN) for online play can add up. Moreover, GEO's rental plans are limited to one or two weeks, with an additional 500 yen per day for any extensions.

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In conclusion, the surge in PS5 rentals in Japan is a multifaceted phenomenon, driven by economic pressures, the popularity of key game releases, and GEO's strategic and timely introduction of a cost-effective rental service. This trend not only reflects the adaptability of the gaming market but also highlights the ongoing demand for accessible gaming experiences.