There is a massive list of functionality added to the system so this update is mandatory, but installing is as simple as it has been on PS3. Thanks to the PlayStation site, here is everything you'll need to do after you open your box and press power:
- On the USB storage device, create folders for saving the update file.
Using a computer, create a folder named "PS4". Inside that folder, create another folder named "UPDATE".
- Download the update file, and save it in the "UPDATE" folder you created in step 1.
Save the file with the file name "PS4UPDATE.PUP".
Click to start the download.
- Turn off the power of your PS4™ system completely.
Check that the power indicator is not lit. If the power indicator is lit up in orange, touch the power button on the PS4™ system for at least 7 seconds (until the system beeps a second time).
- Connect the USB storage device that the update file is saved on to your PS4™ system, and then touch the power button for at least 7 seconds.
The PS4™ system starts in safe mode
- Select [Update System Software].
Follow the screens to complete the update.
Follow those directions and you're good to go. The PlayStation 4 is out this Friday, November 15th in the US and the 29th in the UK.