From the Playstation Blog:

As we mentioned last month during GDC, we’ll be releasing a major system software update for PS4 that will add some exciting new features that many of you have been asking for. Today, I’m pleased to announce a few of those features from PS4 system software update (v1.70) will be available soon, including features that were incorporated as a result of your great feedback. This will be a significant update, and today we’re excited to bring you a sneak peek of just a few things you can look forward to.

Introducing: SHAREfactory

The 1.70 update will enable SHAREfactory, our new rich video editor app for PS4 that makes it easy for you to customize your gameplay videos:

With SHAREfactory, you can now easily combine your captured video clips for editing, personalize them with special effects using filters, transitions, and themes, as well as share them with your friends and social networks. SHAREfactory also allows you to personalize your videos by adding text, stickers, and a set of included audio tracks, as well as video commentary with picture-in-picture capability with PlayStation Camera. It also allows you to import your original music to add to the custom soundtrack for your video.

Take Your Share Anywhere

Once you’re done with your masterpiece, you can easily share your SHAREfactory videos to Facebook, or export them to an external USB storage device to upload them elsewhere, another new feature coming as part of the 1.70 system software update. Other PS4 SHARE enhancements include the ability to change the recording time of your gameplay to shorter increments, the ability to change who you share your clips with on the SHARE screen, and the removal of default saves for screenshots and video clips. In addition to these SHARE enhancements, the 1.70 update will allow you switch off HDCP, enabling you to capture video directly from your HDMI output so you can record and share longer clips of your gameplay sessions — a feature I know many of you have been waiting for. We are excited to see what the PlayStation Nation does with these new social features, and cannot wait to get them into your hands!

Play as Soon as the Game is Released

Providing you with immediate access to your games is a priority designed into PS4, and something we will always strive to make better. We’ve had a great response from PS4 fans about the Play as You Download feature, the snappy load times when launching and playing games, and the general speed and responsiveness of the UI. The 1.70 update adds features to build on this idea and make it faster to play the games you pre-order with an auto pre-download capability, which allows you to pre-download your select pre-ordered game up to several days prior to release. If you have the auto-download feature enabled, it will automatically pre-download your pre-ordered game so you can play as soon as the game is unlocked on release day.

As I mentioned earlier, some of these features were a direct result of the great feedback we’ve been getting from you, our dedicated gamer community. We enjoy listening to your comments, and encourage you to continue sharing your thoughts with us. And this is just the beginning. We’ve got a lot more coming in PS4 system software update v1.70 and beyond. The PS4 experience will constantly evolve, and new innovative ideas can come from anywhere to ensure the platform continues to deliver the best in gaming and entertainment every time you turn it on.

We’ll have more information to share about new upcoming features for this major system software update as the release approaches, so stay tuned!

As someone who is going all digital this generation the pre-loading thing makes me extremely happy as does being able to export videos to upload to YouTube and other services outside of Facebook. Direct YouTube integration would be an awesome next step.

Finally getting that preload, although i switched back to mostly disks this time around. Being able to export to a usb stick is nice as well

It's nice, but I'll take my physical copies any day.

Our minds have overlapped and are perfectly in sync. This is weird.

Ya'll don't know the freedom of digital. Shed your mortal discs and step into the future. Enter the matrix.

You mean the computer program designed to enslave mankind? Nice try!

I just can't do it Demo. With a disc, I can haul it around till the end of time. Digital is just to reliant on services and trusting companies and people. I don't trust people. I understand the freedom of digital, and I don't mind buying the occasional digital game. But for games that I know I love, I need the physical copy. I would never get Last of Us on PS4 digitally, because that for example is a game I want for as long as I game.

@demoskinos: I would love to, but my ISP holds this future back with its bandwidth caps. I can't download 50 GB+ games anymore.

Yeah, but can I pause downloads yet? I can't believe this console has been on the market this long and I still can't pause updates for certain games. The editing thing is cool, there's a bunch of videos I'd love to shorten, but being unable to do something both the older consoles let me do drives me crazy.

Any news on being able to suspend games and start them right where you left off immediately?

@demoskinos: I fully intended to stick with physical as much as possible this gen, but I have yet to buy a physical copy of a game. Granted, I haven't bought that much, but I'm feeling less and less inclined to bother with physical on the PS4.

@liquidprince: That's valid I suppose but man I just love not having to deal with the clutter of discs. Cause honestly I'm running out of room to put them anywhere.

Other than the NBA 2K series (I'm a midnight launch dude when it comes to that game), Second Son was the first disc I bought since L.A. Noire in 2011. The two discs before that were Red Dead Redemption (2010) and GTA IV (2008). I should've bought GTA V physically as well to keep the Rockstar streak alive, the streaming issues on the PSN version are pretty lame. But I was living pretty much all digital way before it was viable. Now that more and more games are selling on PSN and through PS+ I've been playing way more games than I had at just about any point in the PS3 generation.

If it weren't for Titanfall I wouldn't have turned my XBox on in weeks. Just a shame I initially bought my games for XBox. I spend much more time on the PS4 now. I just love the OS, the controller and just general feel of it. I mean, it loads direct to a games list. They backed up what they said about being a game console. The One on the other hand makes navigating the OS a chore.