Enabling HDR in Cyberpunk 2077 will not do the game any justice, unfortunately, as it suffers from a broken HDR, and a Tone-mapping midpoint setting bug aswell, so our advice is to Disable the HDR, until the patch arrives, hopefully.
Looks like CD PROJEKT RED pulled a Red Dead Redemption 2 on us, the Rockstar way. If you recall, back when RDR2 came out, the game suffered from a 'fake' HDR issue, which Rockstar fixed with a patch update eventually. Now, it seems that we're going through this again, with another AAA(A) game.
HDR is a huge deal for many gamers. It's one of those features that separates a superb UHD TV from a decent one. The futuristic world of Cyberpunk 2077's was so promising as it offers a neon-illuminated Night City as a perfect setting for a great HDR implementation. It saddens us that HDR in Cyberpunk 2077 is just a pure SDR with a fake HDR setting.
By default, the HDR is disabled, and when you do enable it, you'll be surprised how everything looks washed out. We tried calibrating both HDR settings and our TV but still did not manage to get a satisfactory picture quality. Then, HDTV released a video with in-depth HDR analysis, which only confirmed our initial suspicions.
We're not gonna dive into many details here, you have everything explained by Vincent in the video at the beginning of the article, but, our concern is that we do not know when the Next-gen upgrade is coming, so we're stuck with the last-gen version on PS5 and Xbox Series X|S consoles, and HDR was something that was supposed to give us boost in picture quality while we wait, but unfortunately we only got washed out colors, faint black, and a bug in one of the HDR options.
So, turn off that HDR, and play in SDR video output. But, we're taking our imaginary hats off to CDPR for making this huge open-world game run in 60 frames per second on PS5, Xbox Series X|S in 90% of the time, with fps dipping badly only in areas with big NPC destiny, so not everything is negative.