CPU and GPU don't always run at max frequency and always trying to run at max frequency means they unnecessarily ramp up with little to no workload (race to idle). I think that's what Sony has been trying to address, all the way back from when they announced the ps5 to be a greener console. (Which was met with instant backlash)
For example a car analogy. Imagine you apply constant throttle yet to keep the speed constant on a hilly road you disengage the clutch (switch to neutral) for a bit 30 times per second (waiting for vsync). The GPU is the engine, what happens to the engine with constant fuel supply and no load, it revs up then down again when the load comes back. This produces extra unnecessary heat and also consumes more fuel (power). So basically Sony is trying to implement a cruise control for console, adjusting the throttle based on the predicted load.
With a constant power budget you avoid unnecessary heat and drawing more power for CPU and or GPU doing not much work at max frequency. I see this happening daily in GT Sport. While in the menus, the fan starts whining like crazy, the game is rendering the menu at a high refresh rate (discarding most frames) and since the lobby menu is very efficient to render it's taxing the CPU and GPU a lot more than when the actual race starts. I've gotten so used to it I wait until I hear the fan settle down before getting up and get ready to race, usually when the auto drive is going. Right in time for the start countdown. I see the same thing in many PC games, go into a menu and wham the fps climbs to 1000 fps!
But conserving power is a dirty word for power hungry gamers lol. This system will stop the problems with simple screens drawing more and power and generating more heat than necessary while still allowing taxing screens to run as fast as possible. It sounds like a paradox, doing more difficult work requiring less power. But just like a car. flooring it without a load will destroy your engine, flooring it with a load not so much.
That's my 2 cents.
Btw I have disabled CPU boost on my gaming laptop since it kept running into the thermal cap with FH4 throttling down the GPU. Without CPU boost (max power state set to 99) I got better frame rates in FH4. However other CPU bound games work better with boost on and don't run into thermal load problems. It would be useful if my laptop had smart shift and adjusted max frequencies based on a power budget.
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