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What you are referring to are the viewing angles, an update won't fix that as its a hardware limitation.
My take on this, who will use a phone on such extreme viewing angles? I understand that AMOLED or LED etc have better viewing angles but that's not that important, what is important is the color saturation, deep blacks, etc, but also AMOLED over saturate pictures, at first this might seem great but its not the real color either, LCDs and LEDs have pros and cons its up to the user to choose the brand that suits them best
What does it mean chip? Here where I lie, S3 is more expensive than XSP....
You are right, S3 is a bit expensive, but not that much (hardly 1500 Rupees difference) but when you compare the quality of screen, in respect of colours, brightness, etc. you find a huge difference. Galaxy S3 display is pretty nice whereas Xperia SP is a dull device. I always wonder, infact I demand, why Sony do not make Xperia SP bright along with more vivid colour display overall by using BE2 instead of making only videos and photos better using their preinstalled softwares? Sony can use BE2 with their software upgrade to make Xperia SP a better device with better display. I do not mind viewing angles problem.