The PlayStation 5 features an overhauled user interface that both introduces new features and also tweaks existing ones to make them a little more intuitive. Although it unfortunately does not include folder support for organizing your games, one UI improvement is the reworked game library, which has been cleaned up to make it easier to navigate.
When tabbing over to the game library, you’ll now notice a drop-down menu available on the left of the screen. Using this, you can change visibility options to show either PS3, PS4, or PS5 games. (PS3 games are playable through PlayStation Now.) Additionally, you can now also filter by source, so you can see the games you acquired through a PlayStation Store purchase, PlayStation Plus, or PlayStation Now.
Tabbing over to the Installed section will show you all your ready-to-play games and, at a glance, you’ll be able to tell where they are installed thanks to the presence of icons on the game tiles that indicate location.