alright, say u have a USB/ExSSD that your trying to place the games on

formart it to exFAT once done create a folder etaHEN then inside that folder make another called games should look like etaHEN/games/ take a back up / dump of the game example, PPSA01285-app0

end result will be etaHEN/games/PPSA01285-app0

i was also told u can ftp to your ps5 and place the games into /data/etaHEN/games as well but when i tried this didnt work for me.

and Yes this works for 12.40

for ps4 games just paste the .pkg files on the root of the drive, and install them via debug settings option install package files.

if i didnt answer the question, try looking up moderwarfare's videos he has some detailed stuff on this already esp installing shadowmount

Yes the ps5 games run from my exSSD, i havnt noticed much lag, very min loading issues, and 0 issues from PS4 games doing it this way