From Kotaku:

Let's say you have no money. What would you do? Get a job maybe, right? One individual in Tochigi Prefecture, Japan hatched a different plan.

A 33-year-old employed man apparently offered retro games like Mike Tyson's Punch-Out!! on online auction sites. But one winning bidder claims that instead of the actual retro game cartridge, pirated copies of the game were sent on CD-R2 discs.

"Despite winning the auction for a Famicon cassette," claims one individual, "I was sent a CD."

In 1987, Mike Tyson's Punch-Out!! was released on Nintendo's Family Computer (aka "Famicom") game system.

The 33-year-old was arrested, accused of violating Japanese copyright law. He's also accused of doing things like selling 1,135 Famicom games burned into CD-R discs for anywhere between ¥60,000 to ¥74,800 (US$726 to $906).

"I sold them, because I don't have any money," the suspect told police.

Japanese authorities continue their crackdown on individuals who violate copyright law by either selling pirated games or even renting retail copies.

Notice the second part of the last sentence?

In Japan it is illegal to even RENT games. I guess Gamefly will never branch into Japan.