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I paid $399 for my PS5. You don't really need to upgrade at least immediately. I also bought the digital version since I no longer own any discs to help save room and clutter in the house.
Memory and storage prices have really dropped. For example, I bought 1TB flash storage for my PS5 was almost $300. I can now get 2TB for $199. And I spent a few hundred on an external flash memory drive, but you can get 5TB for less than $100 and doesn't affect PS4 game performance.
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