To optimize your PS5 for competitive gaming, make sure to enable Performance Mode in Settings > Saved Data and Game/App Settings > Game Presets. Use a wired internet connection or a high-speed Wi-Fi 6 router for stable online play, and adjust your display settings to match a high refresh rate monitor with low input lag. Also, disable unnecessary notifications, enable Game Mode on your TV or monitor, and keep your system and controller firmware up to date for the best responsiveness.