In Japan, the recent surge in renting PlayStation 5 (PS5) consoles can be attributed to a combination of factors including price hikes, the popularity of a major game series, and the strategic launch of a rental service by a prominent retailer. GEO Corporation, a chain operating around 1,000 stores across Japan, introduced a PS5 rental service in February, offering rentals starting at an affordable 980 yen (approximately $7) per 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 this service.

GEO's decision to rent out PS5 consoles was influenced by the decline in their DVD and CD rental business, exacerbated by the rise of streaming services. This shift in consumer behavior prompted GEO to explore new rental opportunities. Yusuke Sakai, the manager overseeing GEO's rental products, noted that the idea emerged in the summer of 2024. At that time, although the PS5 was no longer scarce, rumors of impending price increases due to unfavorable exchange rates were circulating. These rumors materialized on September 2, 2024, when Sony announced a price hike 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 significant price increase led to widespread dissatisfaction among Japanese consumers, many of whom expressed their frustration on Sony’s official X announcement.

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Leveraging its existing rental infrastructure and expertise in handling electronics, GEO was able to offer PS5 rentals at a much lower cost than competitors, who typically charged between 4,500 to 8,900 yen per month. GEO's established systems for selling, repairing, and renting electronics, coupled with staff capable of resetting PS5 consoles, allowed for this cost-effective service. The affordability of GEO's rental prices likely played a significant role in the sudden increase in PS5 rentals, making it easier for curious consumers to try the console for a short period.

The timing of GEO's PS5 rental service launch on February 28 was strategic, coinciding with the release of Monster Hunter Wilds. Capcom's Monster Hunter series is immensely popular in Japan, and the latest installment, Monster Hunter Wilds, was exclusive to platforms that presented challenges for many Japanese gamers. The relative unpopularity of Xbox in Japan, combined with the high PC specifications required for Monster Hunter Wilds, made the PS5 the preferred choice despite its cost. Sakai highlighted that the launch of Monster Hunter Wilds was a key factor in prioritizing the timely setup of the PS5 rental service.

Sakai further elaborated that GEO's rental service aligns with the company's long-standing ethos of providing affordable access to expensive products. This philosophy dates back to the 1980s when GEO made it possible for customers to rent movies for around 1,000 yen a night, a fraction of the cost of purchasing a movie on videotape or laserdisc. Today, with the PS5 priced at nearly 80,000 yen, renting becomes an attractive option for those who cannot afford the outright purchase, such as parents or students.

However, the overall cost of renting a PS5 may not be as low as it initially seems. Additional expenses such as renting or buying games and subscribing to PlayStation Network (PSN) for online play can add up. Additionally, GEO's rental plans are limited to one or two weeks, with an extra charge of 500 yen per day for any extension beyond the initial rental period.