CPU = central processing unit, also referred to as the “processor,” carries out and controls the computer program's instructions by performing input/output (I/O) operations, basic arithmetic, and logic. The difference here is so small it won't matter for most games.

Both consoles have 120 fps ability.

GPU = Graphics Processing Unit, a specialized processor originally designed to accelerate graphics rendering. This difference is notable and might be the most stark difference between the consoles. 'A teraflop refers to how many operations per second a piece of hardware can handle. Since a single teraflop can account for 10^12 operations per second, a difference of 1.7 could represent a significant difference in graphics.' - Tom's Guide

This is a record amount of RAM for both companies. Doubling their latest console's RAM.

The Xbox takes the cake for storage. Some PS5 beta testers noted that only 667GB is available for use upon opening. 802GB for Xbox.

Also the first time both companies have 8k resolution.

From a technical stand point, the Xbox is better or as good as the PS5 in every category. However, that's not to say the PS5 is bad. These differences won't matter to the casual everyday gamer. So, pick whichever console you want to play games on.