In Japan, the sudden surge in popularity of renting PS5 consoles can be attributed to a combination of factors, including price hikes, the release of a highly anticipated game series, and a strategic move by a major retailer. GEO Corporation, a well-established chain with around 1,000 stores, launched a PS5 rental service in February, offering rentals starting at a competitive 980 yen (approximately $7) for a week and 1,780 yen (about $12.50) for two weeks. This initiative has proven incredibly successful, with rental rates reaching 80% to 100% at the 400 stores participating in the program.
GEO's decision to offer PS5 rentals stemmed from the decline in their DVD and CD rental business, driven by the increasing dominance of streaming services. The idea was conceived in the summer of 2024, a time when rumors of PS5 price increases 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 (approximately $427) to 72,980 yen (about $520), and the disc drive version from 66,980 yen ($477) to 79,980 yen ($569). This price hike was met with significant backlash from Japanese consumers, who expressed their dissatisfaction on Sony's official X announcement, citing the high cost of the then four-year-old console.
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Leveraging their existing infrastructure for renting, selling, and repairing electronics, GEO was able to implement the PS5 rental service efficiently. Their expertise in handling second-hand consoles allowed them to offer rentals at much lower prices than competitors, who typically charged between 4,500 to 8,900 yen per month. This affordability has likely encouraged more people to try out the PS5 for a short period.
The timing of GEO's rental service launch coincided perfectly with the release of "Monster Hunter Wilds" by Capcom, a game series with a massive following in Japan. The limited platform availability of "Monster Hunter Wilds" and the high system requirements for playing it on PC, coupled with 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, which GEO's rental service effectively addressed.
Yusuke Sakai, GEO's manager in charge of rental products, emphasized that the company aimed to have the service ready for the launch of "Monster Hunter Wilds," recognizing its potential as one of the year's biggest titles. Sakai also highlighted GEO's philosophy of allowing customers to try expensive products at a lower cost, drawing parallels to their past rental services for movies on videotape and laserdisc. This approach makes renting a PS5 an attractive option for parents and students who might find the console's purchase price prohibitive.
However, potential renters should consider additional costs such as game rentals or purchases and the need for a PSN subscription for online play. GEO's rental plans are limited to one or two weeks, with an additional 500 yen per day for extended rentals, which could impact the overall cost-effectiveness of renting a PS5.
