One of the key differences between Microsoft and Sony's console hardware is how you can upgrade the storage they use. Microsoft supports external hard drives for Xbox One, while Sony allows PS4 owners to open the case and replace the internal hard drive while external drives aren't supported. That won't be the case for much longer, though.
With the rollout of PS4 System Software Update 4.50 (code named Sasuke), Sony is adding support for external hard drives. The internal drive can still be upgraded if you so wish, but once Update 4.50 is installed it will be possible to plug in a USB 3.0 external drive of up to 8TB.
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Once connected, a PS4 will automatically recognize the new drive and allow you to start saving files and applications to it directly. It's also possible to manage the storage from the settings menu and decide where data goes (internal, external, or online storage).
Other new features 4.50 introduces include custom wallpapers, allowing your favorite in-game screenshot to become the background for the PS4 home screen and dimming on the Function Area to help highlight the image. The PS4 Quick Menu is being tweaked to make it more accessible, the Notification List is simplified and condensed down to one list instead of multiple tabs, and 3D Blu-rays can be viewed in stereoscopic 3D using a PS VR headset.
For now, version 4.50 of the firmware is only available to those who signed up to Sony's beta program. The official release does not have a release date yet, but Sony says it will happen "in the weeks to come." And don't forget this update will unlock up to 8TB of external storage on both PS4 and PS4 Pro.