I bought the ps3 when it first came out, the 60gig that is backwards compatible. died about two years ago, with the flashing red light. bought another since that I use in the media room.
ps4 recently died and had it replaced for free by playstation. Did a bit of reading on Australian consumer laws before I gave them the call, just in case I had any issues etc. Based on what I learned from that, I also gave them a call last week about my ps3 that died. The initial consultant told me that they do an exchange for $175. Told him that according to Australian consumer law, that even though the item is out of warranty, if it does suffer a major malfunction within what is considered a reasonable lifetime of the item, they are still required to make an attempt to replace it, if available, or to make other arrangements if no replacements are available.
Got informed that he would have to get a supervisor to give me a call.
Supervisor called the next day, and left a message as I couldn't take the call. No arguments nothing, just left me a message saying that they will replace my seven year old playstation, I just had to provide proof of purchase.
Long story short for those not wanting to read the lot above, sony will still replace failed ps3's, as long as you speak to a supervisor, state Australian consumer law and have proof of purchase.