I'm picking up the new blue one and I'm trading in my old console so I can get it. How does content that you have downloaded work?, will formatting my system be enough or do I have to deactivate it? I read online that it can only be done once every 6 months so If I deactivate my old ps3 will I be able to re activate my new one, I'm so confused. Sorry for all the questions.
You can deactivate/activate your SEN/PSN account on a console as much as you want, but you have to have access to that console for you to do it that way. If for some reason you do not have access to that console you can log in here (click manage account) and you can deactivate your consoles, but you have do deactivate all of them and can only do that every 6 months.
You can only have your PSN account active on 2 consoles at one time so I would suggest deactivating your account on your current system. If you have PS+ then move over all the saves you want into the cloud (or I guess you could just put them on a USB stick). Once you've signed in and activated your account on the new system you'll be able to re download everything you've purchased.
@lego_my_eggo: Thanks you have helped a lot, I decided to deactivate all my devices via the website because I didn't realize my old ps3 and psp were still activated and I don't own those systems anymore so I had to do it that way, if i sign in to a device with my account does that automatically activate it or do I have to do it manually?