A good DAC may improve audio some. But, the rest of the gear matters. I mean, the PS3 already has a DAC internally, and it likely works decently, so to notice an improvement you will need to spend several hundred dollars on a good external DAC... At which point, as said above, you should probably just use the money for an A/V receiver which handles HDMI. Keep in mind that you still will need a good A/V receiver, speakers, etc. to get the best audio and if you feel your audio is lacking then it may not be fixed by the DAC, but something else in your setup.