This is probably a dumb question but I could not figure out why my AVR doesn't give me Dolby options on the sound settings. I have it set up to bitstream Dolby from the PS4 but the only option I have on sound settings is Multi Channel in. I have the AVR settings to be able play Atmos/DTS so I'm not sure why I don't have additional sound settings. I assume for Atmos the receiver would never reflect that without having height or ceiling speakers hooked up to the receiver. Any suggestions would be appreciated.

The sound output for discs is different than games in the PS4. You need to set them each if I recall correctly.

Any disc player is supposed* to bitstream ATMOS or DTS:X media to the receiver to do the decoding after. In practice some dont and some receivers wont decode immersive tracks as legacy correctly without digital ticks and burps. In that case sending PCM from player is the workaround.

Ie. Atmos bitstreamed to some older AVRs wont decode as Dolby True HD as its supposed to.

If set to bitstream Dolby from the PS4 your options on your receiver should be Dolby Surround or Dolby Digital showing depending on how you set up your AVR.

AVR setting:
Direct= Dolby Digital or ATMOS depending on title. (Not sure many game titles render ATMOS natively)
Atmos upmix = Dolby Surround. (Do this even if you dont have heights)

What AVR do you have? Usually spells it out prettywell in the look up charts in the back pages of the manual.

I’m running Denon AVR-x6700h

Set “game” button on bottom of remote to ATMOS/Dolby Surround.

Then hit game button while on PS4 input and it will remember each time you change to that input.

I figured it out. Even though I was changing the setting on the ps4 from the main menu it wasn’t updating once the game or movie started. I had to start the movie and open the sub menu and go to settings and update the audio output from there. As soon as I put it on bitstream the movie changed to atmos output.

Perfect!