Firstly you will lose all of your game saves and PSN installs when you install a new hard drive, you will still have your login accounts so you will not have to create new user names or logins for the psn store and and you will retain any trophies you have gathered so far
Secondly of all make sure you buy the correct hard drive it needs to be a 2.5-inch SATA hard drive (normally found in laptops), i would highly recommend staying away from seagate models, i tried 2 of them and both corrupted after 3 months and i lost all my data, not only that but the download and install speed on them was 5x slower than the original hard drive i had when i bought my PS3.
I settled on a 350gb Toshiba hard drive that i bought from an apple mac store and so far it's lasted me for 2 years and it's still going strong
1: Turn your PS3 On it's side so you see this panel:
2: Lift up the panel and you should see something like this, unscrew the middle screw (usually blue)
3: Lift up the metal metal tab (just above the screw you have taken out) and slide the hard drive holder to the right then pull it out
4: Unscrew the 4 screws, 2 either side shown below:
This will leave you with the empty hard drive holder shown below:
5:Slide your new hard drive into the holder and insert the 4 screws, 2 either side should look like this:
6: Put the hard drive back in your PS3, slide it to the left and put the blue screw back in, return the cover and turn your ps3 on, you should be welcomed with a message telling you that you need to format the hard drive, proceed, and once it's complete you will have a new bigger hard drive


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