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This is the perfect setup for an upgrade, however, a much easier way is to get a laptop hard drive and an external hard drive of 500+ GBs. You can simply connect the external HDD to the PS4 and go into Settings > System > Backup and Restore > Backup. This makes a perfect backup. Once it backs up (10hrs later) you can put in the new drive and choose to restore. Make sure the new drive has the new installation software from PlayStation's website. The instructions are included with this package, but the way it wants you to backup, you only back up your saved data, not your system settings, users or the most important part, your applications! So, you'll have to redownload everything. My method, you just backup, switch drives, restore.