"Despite proof that they had accepted the cancellation they still refuse to refund the charge and gave the same ultimatum to block my account if I use the bank or small claims court to reverse the charge."
Now that's interesting. My immediate thought on reading the article was that if Sony have accepted the transaction was fraudulent, and are now blocking his account because of the chargeback, expecting him to pay it anyway, what he should do is pay it and take the matter to the small claims court to get it back.
However, if that would also result in a blocked account, then perhaps he should go to the small claims court to recover the cost of everything he's purchased from Sony that their blocking has rendered useless, including the cost of the console itself.