In Japan, the sudden surge in popularity of renting a PS5 console can be attributed to a combination of factors including console price hikes, the release of a highly anticipated game, and the strategic introduction of a rental service by GEO Corporation.
In February, GEO Corporation, a chain with around 1,000 stores specializing in renting and selling movies, music, and games, launched a PS5 rental service. This service offers rentals starting at an affordable 980 yen (approximately $7) for a week and 1,780 yen (approximately $12.50) for two weeks. The initiative has proven highly successful, with rental rates reaching between 80% to 100% at the 400 stores participating in the program.
The decision to rent PS5 consoles was influenced by several key developments. Firstly, in the summer of 2024, GEO noticed a decline in its DVD and CD rental business due to the increasing popularity of streaming services. Concurrently, rumors circulated about potential PS5 price increases in Japan due to unfavorable exchange rates. These rumors materialized on September 2, 2024, when Sony announced a price hike, raising the cost 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 significant increase led to widespread dissatisfaction among Japanese consumers, many of whom expressed their frustration on Sony's official X announcement.
GEO's Yusuke Sakai, the manager in charge of rental products, explained that the company saw an opportunity to leverage its existing rental infrastructure to offer PS5 consoles at a lower cost. With a history dating back to the late 1980s, GEO had well-established systems for renting, selling, and repairing electronics, including consoles. This expertise allowed GEO to offer competitive rental prices, significantly lower than other Japanese companies, which typically charged between 4,500 to 8,900 yen per month for similar services.
The timing of GEO's PS5 rental service launch on February 28 was particularly strategic, aligning perfectly with the release of "Monster Hunter Wilds." The Monster Hunter series, developed by Capcom, has a strong following in Japan. However, the limited platform availability of "Monster Hunter Wilds," coupled with the high PC specifications required and the relative unpopularity of Xbox in Japan, made the PS5 the preferred choice for many gamers. The high cost of the console, however, posed a barrier, making GEO's rental service an attractive option for those eager to play the new game without committing to a purchase.
Sakai emphasized that the rental service aligns with GEO's long-standing philosophy of allowing customers to try expensive products at a lower cost. He drew parallels to the 1980s when GEO made it affordable to rent movies that were otherwise expensive to buy. Today, with the PS5 priced at nearly 80,000 yen, renting becomes a more feasible option for many, including parents and students.
However, potential renters should be aware of additional costs that may affect the overall affordability of renting a PS5. These include the costs of renting or buying games and the need for a PSN subscription for online play. Additionally, GEO's rental plans are limited to one or two weeks, with an extension fee of 500 yen per day.
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