Hello gamers! I am waiting for my order of PS 4 to arrive and I've just been researching some games. I noticed this thing about activation/no activation or something like that. It's like games in digital form? Why are they so cheap? I mean there's like premium games a thing like 25 bucks vs 100+ maybe 200 as CD? How does it work?

Also, I'm noticing a lot of like R1, etc. stuff. I'm assuming that's for region. How do I know what region my PS is on? Presumably on the box but does that mean I can't play other R games?

I'm new to PS, have an Xbox 360 and before than PS 1 XD aye Metal Gear represent!