It appears that players who had issues with TR were advised to turn off the interner while playing.
A Sony representative stated they believed the issue was on the server and not with the hardware.
I'm going to try the demo without an internet connection. I think this will tell me if it's a hardware issue or if it's actually a server side issue.
Will post my findings.
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Can confirm, if you're having issues with TR. Just disconnect the internet and it works fine. Been playing for 20 minutes with no freezing. Definitely not hardware related. Sony was right, it's server-side.