The PS5 Digital Edition was arguably the most surprising reveal of Sony's Future of Gaming event.
As you may have guessed, the PS5 Digital Edition is essentially the exact same console minus a disc drive. It will launch at the same time and it can play anything the PS5 can, but only digital versions. Sony has yet to reveal its next-gen price point, but we can trust that the Digital Edition of the PS5 will be a cut cheaper than the standard edition, but no less powerful. That's the trade-off with this new breed of consoles: you can only buy and play games digitally, but you get a cheaper entry point.
Microsoft was the first to adopt an all-digital approach with the digital Xbox One S, but with more and more games being purchased digitally, it's no surprise to see Sony offer an option catering to that market as well. Many people would rather save some money than collect game boxes, and the PS5 Digital Edition will help them do just that. It will also offer a lower price point, which may help offset the inevitable sting of whatever the PS5 costs.
Microsoft will undoubtedly reveal a digital next-gen option of its own in the weeks and months to come. It clearly supports the idea, and rumors have been swirling about a cheaper, digital model of the Xbox Series X - reportedly code-named Lockhart - for a year and change. If anything, it's somewhat strange that Sony showed its digital option first, especially with the lead Microsoft had on its console reveal. The PS5 Digital Edition may well light a fire under Xbox Lockhart, so I wouldn't be surprised if we see it sooner rather than later.