In Japan, the sudden surge in renting PS5 consoles in recent months can be attributed to a combination of factors including console price increases, the release of a highly popular game series, and a strategic move by a major retailer. GEO Corporation, a chain with around 1,000 stores across Japan that specializes in renting and selling movies, music, and games, introduced a PS5 rental service in February. This service offers rentals starting at just 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. The initiative has proven immensely successful, with rental rates reaching between 80% to 100% at the 400 stores providing this service.
Yusuke Sakai, the manager overseeing GEO's rental products, told ITMedia that the concept of renting PS5 consoles emerged in the summer of 2024. This was a period when GEO's DVD and CD rentals were declining due to the increasing popularity of streaming services. At the same time, rumors of an impending PS5 price hike due to unfavorable exchange rates were circulating. On September 2, 2024, Sony confirmed these rumors by increasing 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 move was met with significant backlash from Japanese consumers, many of whom voiced their dissatisfaction on Sony's official X announcement, arguing that nearly 80,000 yen was too steep for a four-year-old console.
In response to these market conditions, GEO decided to leverage its established rental infrastructure, which had been serving customers since the late 1980s. The company's experience in selling, repairing, and renting various electronics enabled it to offer PS5 rentals at a much lower cost than competitors, who were charging between 4,500 to 8,900 yen monthly. This competitive pricing likely encouraged even those mildly interested in the PS5 to try it out for a short period.
The timing of GEO's PS5 rental service launch on February 28 was impeccable, aligning perfectly with the release of "Monster Hunter Wilds." This game, part of Capcom's highly popular Monster Hunter series, was a major draw in Japan. However, its availability was limited to platforms like the PS5, given Xbox's lesser popularity in the region and the high PC specifications required. The high cost of the PS5 made it less accessible for many eager to play "Monster Hunter Wilds," making GEO's affordable rental option even more appealing.
Sakai emphasized that the launch of the rental service was strategically planned around the release of "Monster Hunter Wilds," highlighting the game's significance in driving the service's popularity. He also reflected on GEO's long-standing business philosophy of enabling customers to try out expensive products at a lower cost, drawing parallels to the 1980s when renting movies was a cost-effective alternative to purchasing them outright. With a PS5 now costing nearly 80,000 yen, renting becomes a more attractive option for many, including parents and students.
However, the overall cost-effectiveness of renting a PS5 can be questioned when considering additional expenses such as game rentals or purchases and the need for a PSN subscription for online play. Additionally, GEO's rental plans are limited to one or two weeks, with an additional daily charge of 500 yen for extended periods.
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