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I currently play on a PS3 and want to upgrade to a PS4. I was wondering if I wait til Heavensward comes out and buy it on PS4, will it be a full game download on ps4 or just the update on the disc? I ask this to know if i need to do the free update transfer to PS4 and purchase a PS4 before December 31st. Any one know how that will work?
It's just the expansion, you still need the base game bought on PS4 and linked to your current account.
You can actually upgrade to PS4 anytime, even if you don't have a PS4 yet (see http://na.finalfantasyxiv.com/pr/ps4/ps3_users/). You'll just lose access to the PS3 version immediately. If you're cutting it close with your PS4 acquisition and don't mind being unable to access the game for a while, you can log into Mogstation to upgrade to PS4 anytime before Dec 31 2014. You'll get a code to download the PS4 version as soon as you have a PS4 to input it on.
As for Heavensward, that will be a brand new retail disc (and digital download) that will only function if you already have the base game. When it comes out in March/April/May, you should buy it on whatever console you're currently playing FFXIV on.
They might sell a combo which includes game and expansion but wouldn't count it on it usually just the expansion. So if you planning on getting a PS4 I would take the free transfer offer cause if they do a combo pack it will be more then the expansion by itself so would be buying the game again.