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Speak to you local trading standards or citizens advice bureau in regards to the sale of goods act. When you buy an item you expect it to be usable for a reasonable length of time, which for a high end item like a PS3(as opposed to a $10 hair dryer for instance) would be a couple of years minimum.  You have a 2 year guarantee on electrical goods(well, its actually 6, but the consumer needs to prove its a manufacturer fault).  Don't pay for a replacement just yet.