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Yes. Before selling or giving away a PS3, use Settings > System Settings > Restore PS3 System, then choose Full Format when prompted. This deletes the system hard drive’s data and restores default settings. First preserve anything you want to keep and, if possible, deactivate the console’s Game and Video activations for your PlayStation Network account.

Prepare the console before you reset it

Save anything you want to keep

Restoring the system cannot be undone. Before starting, decide whether you need any locally stored saves, captures, or other data, and preserve wanted content. Sony’s manual warns about irreversible data loss but does not give a complete backup procedure for every content type. Sony PS3 system restoration instructions.

Deactivate your account on the PS3, if possible

Deactivation is separate from deleting the console’s local data. On the PS3, select the local user and go to PlayStation Network > Sign-in > Account Management > System Activation. Highlight PS3, select the content type, then choose Deactivate System. Deactivate both Game and Video if each is activated.

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If you cannot access the console, Sony’s remote option deactivates all devices on the account, not one individual PS3, and can be used only once every six months. Changing your account password signs out inaccessible consoles. See PlayStation Support’s console deactivation instructions.

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Reset the PS3 and choose a format

  1. On the console, open Settings > System Settings > Restore PS3 System.
  2. Follow the on-screen prompts to start restoration.
  3. At the format prompt, choose Full Format for a console being transferred or disposed of.
  4. Keep the console powered on until the process finishes.

Sony says restoration deletes all data on the system hard disk and restores default settings. It also warns that turning off or otherwise interrupting the console during restoration can damage system software and may require service or exchange. Sony PS3 system restoration instructions.

Quick Format and Full Format are not equivalent choices

Choice What Sony says For a sale or transfer
Quick Format Reduces formatting time. Sony cautions that erased data might still be recoverable in some cases with a special tool. Not Sony’s recommended option for transfer or disposal.
Full Format Sony recommends this when transferring or disposing of the system. The manual does not give a time estimate or guarantee that all data recovery is impossible. Choose this at the format prompt.

These tradeoffs are described in Sony Computer Entertainment’s CECH-2101A/CECH-2101B PS3 Instruction Manual (2010 model-era manual): system restoration instructions.

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Choose the right restore command

Restore Default Settings restores settings to their defaults. It is not the documented option for deleting all hard-drive data. For sale preparation, choose Restore PS3 System, which deletes the system hard drive’s data and restores default settings. Sony’s manual distinguishes the two options.

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You do not need to replace a working hard drive just to sell the PS3

The documented reset process does not require a new drive. If the installed drive is failing or you need to replace it, Sony’s older PlayStation 3 Instruction Manual, PS3-01-1.9 describes a 2.5-inch internal Serial ATA drive, but warns that proper operation is not guaranteed for every model. Check compatibility for your exact PS3 model before buying a replacement: Sony PS3 manual.

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Seagate Portable 1TB External Hard Drive HDD – USB 3.0 for PC, Mac, PlayStation, & Xbox, 1-Year Rescue Service (STGX1000400) , Black
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