Your laser has gone bad ! Call Sony at 1-800-345-7669 ! If it's still under warranty you won't have to pay for repairs but if it isn't, Sony charges $150 I believe to repair it !
NOTE: As I understand it, Sony doesn't repair PS3 consoles ! They'll send a replacement refurbished (used) PS3 instead !
If you decide to send it to Sony for repairs, make absolutely sure you back-up all saved data on your PS3 HDD otherwise you'll lose it for good ! To back up data you'll need a removable storage media (such as, USB storage device, MemoryStick, SD Memory Card, or CompactFlash. If your PS3 doesn't have a card reader then you'll need a USB storage device to make your back up !
Make sure you also delete all personal information on your PS3 HDD before sending it in as well !
Delete all user information ! On the XMB go to Users > Sign into each user account > highlight the name and press the Triangle button > select Delete and press the "X" button. The message "If you delete the user, saved data for the PlayStation3 format software, messages, and bookmarks will also be deleted. Do you want to continue?" will appear. Highlight "Yes" and press the X button icon button. You will receive a confirmation message "Are you sure you want to delete the user?" Highlight "Yes" and press the X button icon button.
The user will now be deleted. Repeat for all users.
Format the PlayStation 3 hard disk drive. to remove all information as ! By formatting the PlayStation 3 hard disk drive, all data on the hard disk drive will be erased. If you wish to save your data, make sure to copy it to an external storage device, like a USB flash drive. To format the HDD, 1. Go to Settings icon (Settings) > System Settings icon (System Settings) and press the X button icon button.
2. Highlight [Format Hard Disk] and press the X button icon button.
3. The message "Do you want to format the hard disk?" will appear. Highlight "Yes" and press the X button icon button. The hard drive will then be formatted.
Delete billing (credit card) information from your PlayStation Network account ! If you wish to take extra precaution or are unable to access the XMB of your PlayStation 3, you may delete the credit card information from your PlayStation Network account(s) by using the Account Management website.
Be sure to follow all of the instructions that were given to you by SCEA when sending your system in.