The PS4 must be running a specific version of system software that allows for the execution of homebrew (often referred to as "Jailbreaking").

Not officially. Nintendo has never released Super Mario 64 on any Sony console.

You will use a package installer (e.g., Package Installer from the Debug Settings menu or a homebrew like PKGi ) to sideload the PKG from a USB drive.

Finally, the download completed, and John installed the PKG file on his console. He nervously launched the game, and to his surprise, it worked flawlessly. The iconic Mario theme song played, and John was transported back to the Mushroom Kingdom.