A buddy of mine has recent my gotten it to destiny and I was under the impression everything apart from shadow keep and beyond light would be free for him. But when he goes to the ps5 store he only has the option to pay for the dlc, shadow keep included. Am I missing something glaringly obvious or have I misunderstood bungie?
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You've misunderstood. The base game is free, as is the Forsaken campaign. Shadowkeep, Beyond Light, and the Forsaken Pack, which includes Forsaken content beyond the campaign, all must be purchased.