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PS4 System Software Update v.4.05 [25/10/16]

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I have an original hard drive, never touched it. I updated to 4.05 yesterday. Turn on console today and receive the message:

 

"Checking the system storage status... Do not turn off the PS4. After the check has completed, the PS4 will automatically restart."

 

Goes to the next screen and says:

 

"Cannot start the PS4. Connect the DUALSHOCK 4 using the USB cable and press the PS button."

 

Goes to the next screen and says:

 

"Connect a USB Storage device that contains an update file for reinstallation for version 4.05 or later. You can download the update file for reinstallation from playstation.com."

 

I tried using the 300mb file but only receive an error, "CE-34788-0 The update file cannot be used." I'm guessing the next step will be installing the 900mb complete update but this means all my game saves will be gone? Seriously? You force a mandatory update which improves the quality of the system performance at the expense of all my game saves??!? What should I do?


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