Instructions
Verify that your PS3 is connected to the Internet. Turn on your PS3, go to the menu and select "Settings," "Networks Settings" then "Internet connection test." Press the "X" button on your PS3 controller to begin the test. Press "O" to go back to the menu.
Insert your "God of War III" Blu-ray disc into the Blu-ray drive of your PS3. Start the game and wait for the menu screen to appear. A screen will appear asking you to download and install an update.
Press "X" to accept the update and wait for it to automatically download and install. The game will restart after the update has been applied. There should be no more controller issues nor other bugs after installing the patch.