Shhh... you will bring down the wrath of the PS3 faithful for even suggesting that a PS3 can fail. 
Just kidding. This seems to be the most common issue with PS3, although rare. As others have stated, as long as you have a warranty in force, it should be a simple matter to get it fixed. Can you plug in a memory card or USB harddrive, load the games one at a time, then save the games to the other media? I did this with my 360 to "back up" my saves just in case I experienced a hard drive failure. MS has 360 owners just pop the hard drive off the top of the console before sending it in, then the harddrive can just be popped on the replacement unit when it comes in. Does anyone know if Sony will allow PS3 owners to take the harddrive out before sending the unit in for repair?
