After i had sent the payment through money gram. Provided the reference number to them in order for them to get the money. They said that the number was invalid at first, then they said that there was no money in the account. I phoned up moneygram and they said that the money went in (all £200 of it) and was soon taken out by the designated person.
This means that within the space of 3 or so hours, my reference number had been gotten a hold of (very unlikly as the company is the only one I told it to) and knew what to do with it as well as having the same name as the person I was sending it too (Had to put down the persons name im sending it to when sending through moneygram) and had the correct ID with them.
Add those points together and it's quite obvious that they have the money and have no intention of sending the ps3 and are sticking to their allaby that they never got the money.
Have notified the police now though, so I shall see what comes out of this.