Instructions
Turn the Sony PS3 off, and hold down the "Power" button. The PS3 will turn on and back off.
Hold down the "Power" button again until you hear two beeps. Release the "Power" button. The PS3 is now in service mode; the service menu will come up on the TV screen.
Connect a PS3 controller to the PS3 using a mini USB cable. The Bluetooth capability of the PS3 is turned off when in service mode.
Select "Restore PS3 System" from the service menu. Select "Yes" to restore the PS3 system, returning the PS3 back to factory condition.