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Overheating Indicators
When the PS3 overheats, the entire system may shut down without warning, even in the middle of a game. As inconvenient as that may be, this is a safety feature meant to keep your PS3 from overheating to the point that its components are damaged, causing the system to never work again. Sometimes the main LED, which is near the power button, will begin alternating between green and red while the unit is on; if you see this, you should save your progress right away and turn the PS3 off quickly, since those lights mean the system is beginning to overheat. Normally, after the console overheats, the LED indicator light will flash red after the system powers down. If you see the light flashing yellow, it is most likely indicating a different problem.
"Yellow Light of Death"
Many PS3 gamers call the flashing yellow LED the "yellow light of death," since it indicates the console has encountered a serious error and requires repair. The LED may flash yellow or it may change from green to yellow to green to flashing red. Regardless, the PS3 usually will not power up again if you see the "yellow light of death." Sometimes this issue is due to overheating, but Sony has stated the yellow indicator light is a general error indication that could result from any of many causes. Although many websites give you instructions on how to fix this problem, you should at least consider getting the PS3 professionally repaired. If your console is under warranty and you open it up to try to fix it, you will void its warranty, and you could cause further damage to the PS3. Contact the retailer you bought the PS3 from or contact Sony for service options.
Overheating Solutions
Make sure you don't keep your PS3 in a confined space. If the console doesn't have plenty of space around it to keep itself ventilated, it runs the risk of heating up too much and shutting off or even damaging itself. You should also clean the PS3's vents with a vacuum hose if they seem to be clogged with dust or other debris. Do not use compressed air to clean the vents, since that could blow dust into the system and damage it.
Normal LED Indicators
The main LED on your PS3 gives you very basic information about its status. If the light is red, the PS3 is in standby mode, which for practical purposes just means "off." When it's a solid green, the PS3 is on and functioning normally. If you turn the system off, the light will begin flashing green and then turn to red when it's powered down.