My PS3 reads reg. DVDs but not blu ray or PS3 games?

It probably IS the laser. A Blu-ray drive has 2 lasers -- a red one for DVDs and PSone/PS2 games, and a blue one for Blu-Rays and PS3 games. Your symptoms sound like the blue laser has died, which is pretty common in PS3s, so you'd need a new laser embly (or whatever the actual part is).