Maybe this would be the cause ?
"If there is a +5V on the original Playstation power supply, it think it is mainly used to powered controllers and some other small part of the console. This mean the +5V power supply has not been designed to deliver a lot a current. It probably can not deliver enough power for the Pi. If you request too much current, in the best case, the voltage will fall and the Pi will hard reset. In the worst case, the Playstation power supply can burn.
So, it can be a good idea but we must check if the power supply is able to deliver enough current for the Pi."
If there is not enough current (under load not when disconnected) then something like you said (power led on but no power) could happen.
I just a assumed that red wire is Playstation PSU 5V rail , if not ignore post ...