Funny that Unreal Engine 5 upscaler makes performance mode sharper than quality mode on PS5 LOL. there are some cutbacks, of course, lumen, ambient occlussion, raytracing etc. but I think that both modes have its pros and cons both being perfectly playable, choosing between one or another will depend on personal preferences, I think. Very surprised with what Bloober Team delivered. Gameplaywise the combat ended up being better than what seemed like a trainwreck in first instance, and exploration and new puzzles have been numerous in the first two hours, also, difficulty level on normal stands out, I've died a few times already.
To sum up, it seems to be a worthy successor of the original Silent Hill 2 indeed, I've missed this game series so much.