The sudden surge in popularity of renting PS5 consoles in Japan can be attributed to a combination of factors, including console price hikes, the release of a highly anticipated game, and a well-timed rental service from a major Japanese retailer. GEO Corporation, a chain with around 1,000 stores specializing in renting and selling movies, music, and games, launched its PS5 rental service in February. This service has proven to be immensely popular, with rental rates ranging from 980 yen (approximately $7) for a week to 1780 yen (approximately $12.50) for two weeks. At the 400 stores offering this service, between 80% to 100% of PS5 consoles are consistently rented out.
GEO's decision to offer PS5 rentals was influenced by the declining demand for DVD and CD rentals, spurred by the rise of streaming services. Yusuke Sakai, the manager in charge of rental products at GEO, shared with ITMedia that the concept was conceived in the summer of 2024. At that time, although PS5 supply issues had eased, rumors of impending 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 (approximately $520), and the disc drive version from 66,980 yen (approximately $477) to 79,980 yen (approximately $569). This price hike was met with significant backlash from Japanese consumers, many of whom voiced their frustration on Sony's official X announcement, citing the steep cost of nearly 80,000 yen for a console that was already four years old.
Leveraging its existing rental infrastructure and expertise in handling second-hand consoles, GEO was able to offer PS5 rentals at a significantly lower cost than its competitors, who typically charged between 4500 to 8900 yen per month. This competitive pricing likely encouraged more people to try out the PS5, contributing to the spike in rentals.
The timing of GEO's rental service launch also coincided perfectly with the release of Monster Hunter Wilds. This game, part of Capcom's highly popular Monster Hunter series, was a major draw for Japanese gamers. However, the game's limited availability on other platforms, combined with the high PC specs required and the relatively low popularity of Xbox in Japan, made the PS5 the preferred choice for many players. Sakai emphasized that getting the rental service ready for the launch of Monster Hunter Wilds was a top priority for GEO.
GEO's rental philosophy aligns with its long-standing tradition of making expensive products more accessible to consumers. Reflecting on the 1980s, when renting a movie was far more affordable than buying a videotape or laserdisc, Sakai noted that the same principle applies to the PS5 today. At nearly 80,000 yen, purchasing a PS5 is a significant investment, making renting an attractive alternative for many, including parents and students.
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. Furthermore, GEO's current rental plans are limited to one or two weeks, with an additional charge of 500 yen per day for extended rentals.
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