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A friend of mine is having a problem with Oblivion

His PS3 copy of the 5th anniversary edition keeps freezing at particular moments in the game, eg. most areas of the Imperial city.

This glitch was also present on the Game of the year edition

Was this problem present elsewhere, addressed in updates, or is it a new one? Either way can someone offer advice?

Oblivion was generally pretty buggy, try cleaning the disc or making a new character perhaps?

It seemed to happen on every character, I suggested deleting the game data and re-installing it, like with the 1.4 Patch on Skyrim

And I recall that Oblivion was very famous for its bugs

All games using Gamebryo are famed for their bugs. Even Skyrim's got tons of silly glitches and bugs that often make the game even more enjoyable!

Have him make a new save file in a new slot. That might work. If he's been playing for a long time his existing save file is probably very bloated and will be prone to bugs and crashes. This is something very common in games using this engine, including the excellent Fallout: New Vegas.

As i remember, it was related to cell change. When you switched cells the game freezed for a sec or crashed.

Look for unofficial Oblivion patch

Edit: it's not PS3. I dont know how can you apply patch for PS...