
The PlayStation 5 and Xbox Series X have introduced all-digital versions at launch, a first for living-room gaming consoles. This means no physical discs to handle, and initially, a more affordable price point.
Priced at $400, the PS5 Digital Edition is $100 less expensive than the standard PS5. Similarly, the Xbox Series S costs $300, which is $200 cheaper than the Series X. While this seems like a great deal for next-gen consoles, there’s more to consider.
The PS5 Digital Edition and Xbox Series S have certain limitations that don’t apply to their standard counterparts. Although you might save money upfront, opting for a digital-only console could lead to higher expenses over time. Here’s why:
Costly SSD upgrades will become essential
Games for the PS5 and Xbox Series X will demand at least 50GBs of storage, with some titles exceeding 100GBs. As games grow in size and complexity, their storage requirements will only increase, leading to significant data management challenges.

All PS5 and next-gen Xbox models will face the issue of large game installations consuming valuable SSD space. However, this problem is more pronounced for digital-only consoles, as they rely solely on internal storage for locally playable games.
Eventually, upgrading your console's SSD will likely become necessary. However, purchasing a new SSD can be almost as expensive as the console itself. The PS5 and Xbox Series X utilize high-speed NVMe SSDs, which enhance gameplay but come with a hefty price tag. Initial PS5-compatible SSDs are projected to cost around $230 for 1TB, though prices may decrease as more manufacturers produce compatible drives.
The Xbox Series X and Series S, however, rely on proprietary Microsoft SSDs priced at $220. Unlike the PS5's third-party options, proprietary hardware rarely sees price reductions. Given that the all-digital Series S includes only a 512GB SSD, the $200 saved upfront will likely be spent on an SSD upgrade within a year. In such cases, opting for the Xbox Series X might be more practical, as it comes with a larger 1TB SSD and supports physical media.
External drives cannot run new games
You might wonder, 'Can’t I just use an external SSD or HDD like I do with my PS4 or Xbox One?' Unfortunately, the situation is more complicated.
While the PS5 and Xbox Series X/S feature USB ports for connecting external storage devices, these drives can only be used to play older games—PS4 titles on the PS5 or Xbox One and 360 games on the new Xbox consoles. Although you can transfer PS5 and Xbox Series X/S game data to an external drive to free up SSD space, you cannot play these games directly from the external drive. This solution offers some flexibility but falls short of being ideal.
Reliable internet service will be essential
While all PS5 and Xbox Series X/S users face the challenge of large game installations and limited storage, the standard PS5 and Xbox Series X can install games directly from a disc.
For all-digital consoles like the PS5 Digital Edition or Xbox Series S, each game must first be downloaded and then installed. While installation times can be lengthy, downloading these large files can take even longer. Upgrading to faster internet speeds or optimizing your home network setup—such as switching to Ethernet if Wi-Fi is slow—may become necessary.
Not everyone has access to high-speed internet, and even if you do, downloading new games can quickly consume your ISP's monthly data cap. In households with multiple gamers or heavy streaming, exceeding this cap can result in slower speeds or additional fees. Suddenly, installing games from a disc seems far more appealing.
Game prices will be higher

Many PS5 and Xbox Series X launch titles are priced at $70, indicating that this could soon become the standard for all games. While this is costly, physical copies often see discounts shortly after release, and options like trading, selling, borrowing from friends, or using rental services like GameFly can help offset expenses.
With a digital-only console, options like selling, trading, or refunding games disappear. If a game doesn’t meet your expectations, you’re stuck with it, unable to exchange it for something more enjoyable.
Digital rentals aren’t an option either, though subscription services like Xbox Game Pass and PlayStation Plus offer access to a vast library of games for a monthly fee. However, if you cancel your subscription or a game is removed from the service, you lose access to it entirely.
Purchasing a physical game guarantees you can play it anytime, anywhere—even on a console that isn’t yours. Digital games, however, tend to retain their $60 (and soon $70) price tag for extended periods and are seldom discounted. Unless the market shifts significantly, expect to pay full price for games, even those released years ago. This is often referred to as the Nintendo approach.
Is a digital-only console still worth considering?
Despite these drawbacks, the PS5 Digital Edition and Xbox Series S remain viable options if you understand their limitations and can adapt. Many appreciate the compact, clutter-free nature of an all-digital setup, especially given the substantial size of these next-gen consoles.
The lower upfront cost makes it easier to enter the next console generation, even if upgrades are needed later. Plus, the industry is clearly moving toward an all-digital, subscription-based model, so embracing it now might be wise.
However, there are compelling reasons to opt for disc-drive models, especially if you rely on used games, sales, or rentals. This is also true for those with limited internet access or collectors who value physical media. In such cases, saving a bit more for the standard PS5 or Xbox Series X is a better choice. By then, these consoles might truly justify their cost.
