New here, please help!

We have 2 year old PS3, 80mb model. I have always done regular system updates but recently it hasnt been connecting sucecssfully wirelessly, even though I know the wireless connection is perfect.
Then a few weeks ago it started not recognising the fact there was a game disc inserted, and slowly it has now got to the stage that no discs at all are loading, or even displaying the disc icon to recognise the fact we have inserted a disc.(including blu-ray & dvd also)
I suspected it might need the system update so attempted again today and again, couldnt connect wirelessly, so we actually plugged the ethernet cable in and completed the system updte, but still no luck.
Any ideas what could be the problem?
Thanks in advance!
Jo x