PS5 Console Rentals Surge in Japan: Here's Why

In Japan, the recent surge in renting PlayStation 5 (PS5) consoles can be attributed to a combination of factors including price increases, the popularity of a major game release, and the introduction of a timely rental service by GEO Corporation. Let's delve into the reasons behind this trend.

GEO Corporation, a chain with around 1,000 stores across Japan that deals in the rental and sale of movies, music, and games, introduced a PS5 rental service in February. This service offers rentals starting at an affordable 980 yen (approximately $7) for a week, and 1780 yen (approximately $12.50) for two weeks. The success of this service is evident, as between 80% to 100% of PS5 consoles at the 400 stores offering the service are rented out. Yusuke Sakai, the manager in charge of GEO's rental products, mentioned to ITMedia that the decision to rent out PS5 consoles was made in the summer of 2024, amidst declining DVD and CD rentals due to the rise of streaming services.

The timing of GEO's rental service launch was particularly strategic. It coincided with Sony's announcement on September 2, 2024, of a price hike for the PS5 in Japan, driven by weak exchange rates. The price of the Digital Edition increased from 59,980 yen (approximately $427) to 72,980 yen (approximately $520), and the disc drive version went from 66,980 yen (approximately $477) to 79,980 yen (approximately $569). This increase led to significant dissatisfaction among Japanese consumers, many of whom felt that nearly 80,000 yen was too expensive for a console that was already four years old.

GEO capitalized on this sentiment by leveraging its existing infrastructure and expertise in renting and selling second-hand electronics. The company's long-standing experience allowed it to offer PS5 rentals at much lower prices compared to other services, which typically ranged from 4500 to 8900 yen per month. This affordability has made it easier for people to try out the PS5, contributing to the spike in rentals.

Moreover, the launch of GEO's PS5 rental service coincided perfectly with the release of Capcom's Monster Hunter Wilds, a highly anticipated game in Japan. Given the limited platform availability of Monster Hunter Wilds and the high PC specifications required, the PS5 became an attractive option for many players. However, the console's high price posed a barrier, making GEO's rental service a more feasible way for gamers to experience the game.

Sakai emphasized that the timing was crucial, stating that Monster Hunter Wilds was expected to be one of the biggest titles of the year, prompting GEO to prioritize the timely setup of their rental service. This reflects GEO's broader philosophy of allowing customers to try out expensive products at a lower cost, a strategy that harks back to their early days of renting out movies and laserdiscs at affordable prices.

Despite the attractive rental prices, it's important to consider additional costs such as game rentals or purchases and the need for a PSN subscription for online play. Furthermore, GEO's rental plans currently limit extensions to 500 yen per day, which could add up if users wish to extend their rental period beyond the initial one or two weeks.

In summary, the combination of Sony's PS5 price hike, the strategic timing of GEO's rental service launch, and the popularity of Monster Hunter Wilds have all contributed to the surge in PS5 rentals in Japan. This trend underscores the importance of affordability and accessibility in the gaming market, particularly in a context where high upfront costs can be a significant barrier to entry.

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