The PS4 did things a little differently than prior generations. Where systems like the PS2 allowed for plug and play functionality, the PS4 ended up functioning more like a PC.
For those out of the loop, things like installing games can seem a little backwards. Up until the latest generations, the beauty of playing on console was how fast players were able to start playing.
Do all games require installation?
Unfortunately, yes. Before playing any game on the PS4 (disc or digital) you will need to install it to the systems hard drive. Although annoying, this helps with overall load times while playing games.