The fault : The PS4 sets it's RGB setting to AUTOMATIC. They even recommend this setting. Problem is the PS4 isn't properly communicating with your TV like you'd expect it should through HDMI. For example, I verified this with my own BenQ monitor. My display is clearly set to full, and the ps4 is set to automatic, but apparently the PS4's 'automatic' setting is assuming limited. The problem only fixes itself when I have to manually put the PS4 to output at full. The PS4 doesn't do this automatically. Which is stupid.
Ether way, Sony should look into this, and you - should just assume the worst and set it up manually.
If you notice that often times you have to lower the games in-game brightness settings really low in order to achieve whatever the game is asking (usually : lower brightness until said object is no longer visible) than likely your RGB setting is off. Or, if you feel that dark areas in games are just too damn dark, like looking into a black hole of darkness - we call this crushed blacks. Your settings may also be off. Please look at the end of this post for descriptions on what settings between your PS4 and TV cause what problems.
*** What to do ***
- Under settings -> sound and screen -> your ps4 RGB output is at automatic. You want to either change it to limited or full, to match whatever your TV is set at. So - check your TV's option menu to see what it's RGB levels are, under the options the tv may have it listed like black level, or RGB range, or color space, different tv companies call it different things but it refers to the same thing, if you can - set it to FULL, or HIGH. Then, go under sound and screen in your PS4's settings menu and change it to FULL.
- If your TV only has a LIMITED or LOW setting, or if it doesn't even have an option for this at all (probably an older TV) then assume limited, and set the PS4 to LIMITED. As a rule of thumb, it seems MOST PC monitors are set to RGB FULL, thus your PS4 should be set to RGB FULL.
The above steps are for ideal conditions. Some TV's call the RGB color range different things, like black level, so if you need help post it in here and I'm sure others with similar model TV's can help.
Important, since all TV's label it differently, but all these terms mean the same thing, observe:
Full : High/Normal : Wide : RGB 0-255 = all equate to Full RGB setting on PS4
Limited : Low : Narrow : RGB 16-235 = all equate to Limited RGB setting on PS4
In summary: Your TV and PS4 need to match. Full to Full. Or Limited to Limited. As others have said, it's not like one is necessarily 'better' than the other. They just have to be the same between devices. And don't trust the PS4's Automatic setting, depending on the type of TV, the PS4 and TV do not necessarily communicate proper RGB color ranges properly. Check your devices manually and make sure they match up and SET IT UP MANUALLY.
PS4 Limited + TV Limited = Good
PS4 Full + TV Full = Good
PS4 Full + TV Limited =Crushed Blacks. You'll get a more vibrant image, but don't be fooled, this is not good since games will start being overly dark, especially in darker areas, it'll be near impossible to see.
PS4 Limited + TV Full = Washed out, dull, flat image. Everything seems too over-exposed, and blacks appear "greyish"
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