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Sorry this has happened to you OP.
Is there any way of proving that you had phoned Waterstones initially about this defect in your screen - that way maybe Sony would be convinced that there was an initial problem with the device.
Otherwise you have a few other options including selling the unrepaired unit on somewhere like ebay or finding a 3rd party other than Sony who might be able to repair the unit for you at a lower cost.
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