These days, almost all consumer devices like PCs, games consoles, Blu-Ray players, and laptops connect to displays with either DisplayPort, or HDMI. From the outside these may look arbitrary, after all you simply plug them in and they work right? Well, there are unique pros and cons to both, so let’s have a look at each cable to learn about the differences.
The good news about these HDMI is, any cable meeting a given standard, will work with all preceding standards too. The cables are fully backwards compatible.
DisplayPort is more popular in the world of computing right now. If you look on the I/O of a modern GPU, DisplayPort is the more numerous connection. Outside of PCs, it's not common however, with TVs seldom including it. As a result, it is not used on games consoles.
As with HDMI, the cables are backward compatible.
It depends on the resolution and refresh rate of your monitor, whether you intend to use HDR, and your GPU. Remember that even though DisplayPort technically has higher maximum bandwidth, this is unlikely to be relevant. HDMI 2.1 is perfectly capable of 240Hz at 1440p, and despite what you see on reddit, very very few people have a monitor like that.
But, yes, technically DisplayPort is the more performant display connection standard. So, if you have a very high end monitor, or multiple, then you should use DisplayPort if you can. You probably don't strictly-speaking need it, but additional headroom means that if you encounter weird display issues or fail to find your target resolution or refresh rate options in the display settings menu.
Gaming consoles use HDMI because they are usually connected to TVs. This is because TVs are traditionally less focused on performance and must be more broadly compatible with consumer A/V equipment. At time of writing, there are no other options here. If you use a Switch 2, PS5 or an Xbox S/X, you will be using HDMI.
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