On PS4, you'll first want to go into Settings, then select Account Management Account Information Profile Online ID.
Changing your PSN ID will be free for the first change.
To change a username, players will need to do so on their PlayStation 4 or via a web browser.
Child accounts can not change their online ID.
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Matt Purslow is IGN UK's News and Entertainment Writer, and threw dozens of Trophies down the drain when he changed his PSN ID back in 2013.
The much awaited PSN name change feature rolls out for PS4 users today.
It also notes that not all games have been tested and others may not support the change feature; there is a list of known compatible games here. Next, just follow the prompts, and you're done. Bloodborne, Grand Theft Auto V, and National Basketball Association 2K19, among others, have verified problems relating to audio, controller settings reverting to default, your old ID continuing to display, or accounts unlinking.
The worst thing that can happen is that your name may be removed from a leaderboard.
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There's a broader list of games with "issues identified", which means your older ID might still be visible to some players, or that your new ID doesn't appear in some areas like leaderboards and rankings.
The "critical issues" are a bit more disconcerting. Games with critical issues might result in lost progress, or they could even lose in-game currency. Sony's put together a list of tested games here.
You can change your PSN name as many times as you want (if you're willing to pay, of course). If someone has an active PlayStation Plus subscription, it will be $4.99, but it will be $9.99 if they don't.
It's arguably an overdue change when Xbox owners have long had the option of changing their gamertags, and the technical limitations could leave many people sticking with their names for a long time.
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Nothing bad will happen if you have them on your console after changing your name, but I know I'd forget about the potential problem and open the game (s) on a whim if they were still around.