In my case, I decided it makes more sense to repair it. We love the functionality it provides for both playing games and movies. The PS3 store lets us download movies and TV shows, as well as games. We also love being able to watch HD content on Blueray DVDs.
The repair made more sense than replacing it because we still play a lot of PS2 games that just aren't compatible with the new PS3 units. The unit we have has hardware emulation, so the old games play great. A new unit with a much larger hard disk would cost considerably less than a replacement unit with the same features. Repairing the unit after the warranty period expires costs around $150 plus any applicable local sales tax. You pay via credit card on Sony's secure site and they ship you a box. You make sure to backup you hard drive, if possible, and only send the PS3. No cables, controllers, games, or anything else, just the PS3. They include a shipping label and you send it off.
A few days later, Sony sends it back to you. UPS requires a signature for pickup, so plan on being home or have it shipped to your office.
To wrap this up, it works great and we are really enjoying the games and movies again. It was quick and painless and I just wish I hadn't procrastinated for so long.
