I had the same issue with mine a while back. The gear looked fine (though discolored), but it wouldn't move the laser. But the weird thing was, if I would load it up and let it sit at the 'just a moment' screen for something like 30 minutes, it would suddenly start to work and load the game normally.
But alas, it didn't work for very long. A week later, it stopped working when the gear finally broke entirely. I got it replaced, and it's been running great ever since.