To add to this, it's probably worth going into how this matters (or doesn't) for games consoles, as the use-case is quite different than for PC (even for PC games).
First, though, it's worth clarifying
exactly what those SSD performance measurements in the video are. There are four measurements being used:
SEQ1M Q8: Sequentially reading 1MB at a time with a queue depth of 8
SEQ1M Q1: Sequentially reading 1MB at a time with a queue depth of 1
RND4K Q32: Randomly reading 4KB at a time with a queue depth of 32
RND4K Q1: Randomly reading 4KB at a time with a queue depth of 1
As to why the 4KB and 1MB sizes are typically used for these tests, 4KB is the block size for consumer SSD controllers. That is, any typical SSD you're going to use in your PC is divided up into 4KB blocks, and when reading or writing data, the SSD is only going to be able to operate on 4KB at a minimum. Testing with 4KB blocks therefore represents a worst-case scenario for random data access. The 1MB size is simply large enough that you can use it as a best-case scenario for sequential data access.
The use of 4KB blocks is part of the reason why high performance SSDs require multiple GBs of RAM attached to the controller, to quickly look up what's in every block. A 1TB drive contains 256 million blocks of data, so you need a lot of RAM to keep all of that quickly accessible if you want to do well in those random read/write tests. An alternative is to drop the DRAM to hit a lower price, and use system RAM to cache part of the lookup table. This can allow for reasonable sequential read speeds but random reads and writes typically take a significant hit. The Kioxia BG4 SSD tested in the video is one of these DRAMless SSDs, so it's not too surprising to see pretty poor random performance.
Coming back to my original point, the design of the PS5's SSD is pretty instructive on how this all translates to games consoles. Anandtech has a good article on it
here, but to summarise, part of the reason the PS5's SSD offers such high performance is that they designed it in a way that works for game consoles, but would be absolutely
terrible as a PC SSD. Instead of either attaching a lot of DRAM to the SSD controller, or dropping the DRAM and using the system RAM as a cache for the lookup table, Sony took the third option: change the block size of the SSD. This isn't really an option on PC, but on a console Sony has control over the OS and developers will optimise around whatever hardware is available, so there's nothing stopping them.
Sony didn't just increase the block size by a factor of two or four, they increased it all the way to 128MB, a full 32,768 times the block size of a typical consumer SSD, and significantly larger even than the large 1MB chunks used in sequential SSD testing. Instead of 256 million blocks, the PS5 SSD only contains around 6,000 blocks of data, so Sony can fit the entire lookup table in a small pool of SRAM right on the controller.
This allows for very high sequential read speeds of 5.5GB/s, but likely pretty terrible random performance. In fact, with a 5.5GB/s peak and 128MB blocks, we can quite easily calculate the peak theoretical IOPS figure for the PS5 SSD: it's 41. No, I'm not missing a bunch of zeros or a letter K there, it's literally the peak read speed divided by the block size (keeping in mind they use different definitions of GB/MB, just to make things fun). When operating at full tilt, the PS5 SSD is reading about 41 full 128MB blocks of data a second, and the peak IOPS rate therefore can't be higher than 41 (as it has to read the full 128MB block for each request, even if it only needs 4KB of data from it). If you were running the test from the video on the PS5 SSD, the RND4K Q1 read result should come to about 168KB/s, or 0.17MB/s, which is about 100x lower than the SD card being measured.
Doesn't that mean that the PS5 SSD is bad and will perform worse than an SD card? On a PC maybe, but not in a games console. For the entire existence of the Playstation, both Sony's first party developers and third party developers have had to work around very slow seek times, literally waiting for a read head to line up to the data they need off some form of mechanical media, first optical discs, and then hard drives. Developers have decades of experience making sure their data is carefully laid out to ensure the most efficient sequential access, and console OS's have the ability to make guarantees about how that data is stored on disk in a way which Windows can't.
So when faced with the option of achieving 5.5GB/s with a traditional SSD approach with a 4KB block size and additional DRAM for the controller, or saving a bunch of money by using a much larger block size, forgoing the DRAM and just asking developers to keep doing what they're doing with carefully ordered data, they went with the latter. It's possible that developers may have had a bit of an easier time with, say a 1MB block size, but with a single PBR texture set coming to a few MBs, there's only so much to gain by going smaller with the block size. My guess is that Sony chose the 128MB size carefully based on feedback from developers.
To sum up, there are two things to learn here:
Firstly, if you're buying an SSD to use as the boot disk on your PC,
make sure it has DRAM. PCIe 3.0 SSDs are pretty good value at the moment, and a good one will have a noticeable (if not enormous) benefit to real-world performance over a SATA SSD. PCIe 4.0 and 5.0 SSDs are overkill for general consumer use, but newer PCIe 4.0 drives can be more power efficient because they use newer controllers, so might be worthwhile if there's not much of a price difference or you're on a laptop.
Secondly, and more pertinently to this thread, random performance on an SSD doesn't matter that much in a games console. Games just don't need to read lots of 4KB chunks from random parts of the SSD all that often. Nintendo won't use a custom SSD like Sony, going for an off-the-shelf eMMC or UFS drive instead. Any option available to them (including the eMMC used in the original Switch units) will have far higher 4KB random read speeds than PS5's SSD. Ultimately it won't really matter, as developers have and will continue to manage data layouts to ensure they can make the most out of peak sequential read speeds.