In Japan, the trend of renting a PlayStation 5 (PS5) has seen a significant surge in popularity in recent months. This shift towards renting rather than buying Sony's current generation console can be attributed to several key factors, including price increases, the popularity of a major game series, and the strategic introduction of a new service by a major Japanese retailer.
In February, GEO Corporation, a chain operating around 1,000 stores that rent and sell movies, music, and games, launched a PS5 rental service. The rental prices are notably affordable, starting at 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. This initiative has proven highly successful, with rental rates reaching between 80% to 100% at the 400 stores offering the service.
According to Yusuke Sakai, the manager in charge of rental products at GEO, the concept of renting PS5 consoles emerged in the summer of 2024. This was a period when GEO was experiencing a decline in DVD and CD rentals due to the growing dominance of streaming services. At that time, although the supply of PS5s had stabilized, rumors circulated about impending price hikes in Japan due to unfavorable exchange rates. These rumors materialized on September 2, 2024, when Sony announced a price increase for the PS5 Digital Edition from 59,980 yen (approximately $427) to 72,980 yen (approximately $520), and for 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 expressed their frustration on Sony’s official X announcement, deeming the price of nearly 80,000 yen excessive for a console that was already four years old.
In response, GEO considered leveraging its existing rental infrastructure to offer PS5 rentals. As a company with a long history of selling, repairing, and renting consoles, DVDs, CDs, and other electronics since the late 1980s, GEO had the necessary systems and expertise in place. The ability to repair and factory reset second-hand PS5s allowed GEO to offer the service at much lower rates than its competitors, who were charging between 4,500 to 8,900 yen monthly for similar services. GEO's competitive pricing likely played a significant role in the sudden increase in PS5 rentals, making it more accessible for individuals to try out the console for a short period.
The timing of GEO's PS5 rental service launch on February 28 coincided perfectly with the release of Monster Hunter Wilds. Capcom's Monster Hunter series has always been immensely popular in Japan, and the latest installment's limited platform availability posed a challenge for many Japanese gamers. With Xbox less popular in Japan and Monster Hunter Wilds requiring high PC specifications, the PS5 emerged as the most viable option despite its high cost. Sakai noted that GEO prioritized launching the rental service in time for Monster Hunter Wilds, recognizing its potential as one of the year's biggest titles.
GEO's approach aligns with its long-standing philosophy of allowing customers to experience expensive products at a lower cost. This strategy echoes their past practices, such as renting out movies on videotape or laserdisc for around 1,000 yen a night when purchasing them would cost between 15,000 to 20,000 yen. Today, with the PS5 priced at nearly 80,000 yen, renting becomes an attractive option for parents and students who might find the outright purchase prohibitive.
However, the cost-effectiveness of renting a PS5 can be questioned when considering additional expenses such as renting or buying games and the necessity of 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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