PlayStation 5 features an internal storage space of 825GB but that does not take into account the storage space reserved for operating systems and functions.
Following a reveal of the new user interface last week, it has now been more or less verified (via VGC) that PS5 reserves around 20 percent of its total 825GB storage space for system files. That means players will not be accessing the complete 825GB for their games as previously assumed. They will only have around 664GB available to install their games before being forced to invest in external or additional storage options.
This was being rumored for a few months now. Consumers though were hoping that the quoted 825GB of storage space was after taking out reservations for the operating system. That PS5 was actually housing an internal solid-state drive of 1TB and 825GB would be available for games.
Unfortunate as it is, the amount of usable storage space has gone down for the hopeful. The only saving grace being that the final storage numbers at launch may be different from the development kits presently in the wild.
Sony Interactive Entertainment will be announcing expandable storage options after launching PlayStation 5 this holiday season. They will however not be cheap. PS5 does feature a regular NVMe M.2 SSD slot for storage expansion but not every NVMe M.2 SSD will work. Storage manufacturers like Seagate and Western Digital are being licensed by Sony to design and sell compatible NVMe M.2 SSD storage drives which are going to be very expensive.
PlayStation 5 launches worldwide on November 12, 2020, for $500. The accompanying all-digital edition launches on the same day but for $400. Except for a missing disc drive, the all-digital edition features the same hardware specifications as the flagship console. In terms of storage management though, the standard PS5 will obviously have an advantage over its digital little brother.