If you recently bought a PS3 that most likely means you are using the video cable that came in the box which will only give you picture in Standard Definition. You need to go buy either an HDMI cable (assuming your tv has in input plug for it) or a Component cable.
Try following this display settings guide. The issue could be that you don't have the higher resolutions enabled, so follow the guide and make sure to enable 720p/1080p.
What other systems are you comparing this to? Also how close are you sitting to this TV? Console games can look like hot garbage on a 1080p if you are sitting too close to the screen. If it looks bad compared to an Xbox 360 then it sounds like it not set up properly.
Are you using Component the 5 colored plugs? Or are you using HDMI? If you are only using 3 colored plugs it would look bad, like a Wii game.
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