I suggest you call sony's customer support and inform them of the problem. But if you want to try formating you should leave that as a last option. But incase you want to know
Step 1: while the Ps3 is off You have to hold the power button for a couple of seconds the ps3 will beep about 3 times and shut off by itself while still holding the button.
Step 2: hold the power button again and wait for the ps3 to beep stimultaniously again and then release. This should make the screen go blank and then ask for a screen resolution ( or i think it ask for a resolution after you chose an option )
Anyhow after the screen you should get some options, one of them is to completely format the hardrive. There's another option about rebuilding your database in case there's bugs or errors. Again, don't format your ps3 unless is your last option. Call Sony's customer support first and see what they have to say, or you can also check the customer support FAQ in their page. If this is a common problem there should be a suggestive solution to it there.
Formating the Ps3 will delete all the data it has, all the installed games, saved files etc, and it may not even solve the problem. This is why it is considered a last resort. It's an all or nothing gamble.
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