Yes, it's entirely possible to transfer your data from a larger SSD to a smaller one, provided the total used space on the 1TB SSD is less than 500GB. If you're over that, you'll need to make some decisions on what to keep and what to delete.
Here's a quick rundown of the process:
- Backup Data to an External Drive: Using the PS4's built-in backup utility, you can back up your games, save data, and other data to an external hard drive.
- Replace the 1TB SSD with the 500GB SSD: Physically replace the old drive with the new one.
- Initialize the PS4: Upon booting up with the new SSD, your PS4 will prompt you to install the system software. Use a USB drive to do this.
- Restore from Backup: Connect the external drive where you backed up your data, and use the restore function on your PS4.
Remember, trophies are tied to your PSN account and are stored in the cloud, so you don't have to worry about them. However, to be on the safe side, sync your trophies with PSN before doing any transfer.
For game saves, I'd also recommend uploading them to the PS Plus cloud storage if you have a subscription, just to have an extra layer of safety.
Good luck with your transfer, and I hope it goes smoothly!