Sven has been killed and I was sent to intimidate him but he is toast.
I have tried reviving him and beating him but to no avail, I even brought him
back to riverwood and beat him up there as a walking dead dude.
Playing on ps3.

Any suggestions would be great. Thanks

Well, teh problem lies in the PS3. Had it been PC it could be solved through console...
'No, sorry. I can't help you. Tough luck.