Smart delivery is excellent and MS is being very good about features and flexibility for their software.So am I missing something? Why is it that if you only have a PS4 at the moment, and REALLY want a PS5 but just can't find one... why can't you start buying PS5 games now and play them on your PS4 until you can find a PS5? Like Horizon Forbidden West is an example. If you buy the $70 PS5 version you should just be able to insert that disc into a PS4 and play the PS4 version until you have a PS5.
But you're probably asking; why not just buy the PS4 version now and upgrade to the PS5 version later? Well why should you HAVE to do that if you OWN the game? What if you want the PS5 case and you don't want to continue buying PS4 games when you eventually want to buy a PS5?
I really feel like Xbox's system of "Smart Delivery" is so easy to understand compared to the PS5 and not to mention that Series X-optimized games aren't $10 more. Whatever system you have, the game will be played on the best version for that system automatically.
Also it's really frustrating you can't preload games you don't own yet. You can do that on Xbox, but not on PS5... like I have COD: Cold War coming from Gamefly... it would have been nice to be able to preload the likely 100+ GB game before I get the disc in but I can't.
In terms of game pricing.....so far its mostly or maybe even only been PS5 exclusives, which are $69. Sony is the market leader in hardware and has a lot of well reviewed exclusives. They can charge more. That said, you can get games day 1 from Walmart and some other places, for $10 less.
Also, you can get a full powered PS5, for $400. And extra internal storage isn't proprietary.
MS has maybe a handful of true exclusives. But also, their gameplan is to ultimately get people to pay the "low" price subscription of gamepass. They can't compete on exclusives. So they are competing on price and flexibility for software.
Nintendo has incredible first party exclusives, is the only portable offering, and you can get in for $200.
Each company has their positives and negatives.