Now this is a weird one because you can still play Blueray movies. Most issues I see are with the dual laser units where the DVD or Blueray laser will burn out. Since you can still play movies this looks like a controller issue to me.
If this is the case this will not be an easy fix because the controller card is tied to the motherboard of the PS3. So you will need to beable to flash the controller card of the replacement. You may need to see if there is someone in your local area that does server that can help you with this.
The other option is if you are still under your Sony/Store warranty I would take the unit back in to get replaced.
Let me know if t you have any more problems or questions.
Laser is bad in the drive which is why it will recognize bluerays but not games. Laser requires different strengths to read certain discs and if the laser is weak in any way then it won't be able to read certain discs. You can get new lasers on Ebay or even replace the whole drive which you can get on Ebay as well.
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