A software update will be available forowners as soon as they power on the system. While the update isn't required (single player games can still be played without an Internet connection), it is recommend that you install it to receive the full benefits of Sony's latest console.
There are two methods for installing the update: directly onto an Internet-connected PlayStation 4 or with a USB flash drive. The latter can be utilized for those who don't have an Internet connection readily available.
Here's how to do it:
Step one: Insert a USB drive with at least 1GB of free space into your computer.
Step two: Create a folder on the drive titled "PS4" -- no spaces.
Step three: Inside of the PS4 folder, create a folder named "UPDATE" in all caps.
Step four: Download the update from Sony's website and save it in the UPDATE folder on your USB drive. The latest update is version 1.50.
Step five: If the power indicator on the PlayStation 4 is orange, hold the power button until the system beeps (approximately 7 seconds). Once the system is turned off, connect the USB drive.
Step six: Boot the PlayStation 4 in safe mode by holding the power button for 7 seconds.
Step seven: Plug the controller in, hit the PlayStation button, and select the "Update System Software" option. After a few minutes and a couple of restarts, your PlayStation 4 should be up to date.
Step eight: To ensure the update was properly installed, enter Settings, click on System Settings, and select System Information.