https://obsproject.com/forum/threads/how-to-make-high-quality-local-recordings.12600/
I'd be more inclined to believe bad settings.
If you've used the settings from this guide I just linked and it still looks bad, post a log from that session.
06:14:15: CLR host plugin strings not found, dynamically loading 4 strings
06:14:15: CLRHost::Initialize() attempting to load and start the .NET runtime (null)
06:14:15: CLRHost::Initialize() Found version v4.0.30319 .NET runtime
06:14:15: CLRHost::Initialize() attempting to use v4.0.30319 .NET runtime
06:14:16: CLRHost::LoadInteropLibrary() load the assembly plugins\CLRHostPlugin\CLRHost.Interop.dll
06:14:17: CLRHost::LoadPlugins() attempting to load the plugin assembly CLRBrowserSourcePlugin
06:14:19: CLRHost:: Could not find/load browser settings at location C:\Users\Jonah Schultheis\AppData\Roaming\OBS\pluginData\browser.json
06:14:19: CLRHost:: Exception: System.IO.FileNotFoundException: Could not find file 'C:\Users\Jonah Schultheis\AppData\Roaming\OBS\pluginData\browser.json'.
06:14:19: File name: 'C:\Users\Jonah Schultheis\AppData\Roaming\OBS\pluginData\browser.json'
06:14:19: at System.IO.__Error.WinIOError(Int32 errorCode, String maybeFullPath)
06:14:19: at System.IO.FileStream.Init(String path, FileMode mode, FileAccess access, Int32 rights, Boolean useRights, FileShare share, Int32 bufferSize, FileOptions options, SECURITY_ATTRIBUTES secAttrs, String msgPath, Boolean bFromProxy, Boolean useLongPath, Boolean checkHost)
06:14:19: at System.IO.FileStream..ctor(String path, FileMode mode, FileAccess access, FileShare share)
06:14:19: at CLRBrowserSourcePlugin.Shared.BrowserSettings.Reload()
06:14:20: CLRHost::LoadPlugins() successfully added CLR plugin [Type: CLRBrowserSourcePlugin.CLRBrowserSourcePlugin, Name: CLR Browser Source Plugin]
06:16:00: Open Broadcaster Software v0.657b - 32bit (´・ω・`)
06:16:00: -------------------------------
06:16:00: CPU Name: Intel(R) Core(TM) i7-6700 CPU @ 3.40GHz
06:16:00: CPU Speed: 3408MHz
06:16:00: Physical Memory: 4095MB Total, 4095MB Free
06:16:00: stepping id: 3, model 94, family 6, type 0, extmodel 2, extfamily 0, HTT 1, logical cores 8, total cores 4
06:16:00: monitor 1: pos={0, 0}, size={1920, 1080}
06:16:01: Windows Version: 10.0 Build 10240 (revision 16384)
06:16:01: Aero is Enabled
06:16:01: -------------------------------
06:16:01: OBS Modules:
06:16:01: Base Address Module
06:16:01: 01050000 OBS.exe
06:16:01: 6C690000 OBSApi.dll
06:16:01: 6BFC0000 CLRHostPlugin.dll
06:16:01: 64290000 DShowPlugin.dll
06:16:01: 64260000 GraphicsCapture.dll
06:16:01: 64230000 NoiseGate.dll
06:16:01: 64210000 PSVPlugin.dll
06:16:01: 641D0000 scenesw.dll
06:16:01: ------------------------------------------
06:16:01: Adapter 1
06:16:01: Video Adapter: NVIDIA GeForce GTX 980
06:16:01: Video Adapter Dedicated Video Memory: 3221225472
06:16:01: Video Adapter Shared System Memory: 1073676288
06:16:01: Video Adapter Output 1: pos={0, 0}, size={1920, 1080}, attached=true
06:16:01: =====Stream Start: 2016-01-26, 06:16:01===============================================
06:16:01: Multithreaded optimizations: On
06:16:01: Base resolution: 1920x1080
06:16:01: Output resolution: 1920x1080
06:16:01: ------------------------------------------
06:16:01: Loading up D3D10 on NVIDIA GeForce GTX 980 (Adapter 1)...
06:16:01: ------------------------------------------
06:16:01: Audio Format: 48000 Hz
06:16:01: ------------------------------------------
06:16:01: Audio Channels: 2 Ch
06:16:01: Playback device Default
06:16:01: ------------------------------------------
06:16:01: Using desktop audio input: Realtek Digital Output (Realtek High Definition Audio)
06:16:01: Global Audio time adjust: 0
06:16:01: ------------------------------------------
06:16:01: Audio Encoding: AAC
06:16:01: bitrate: 192
06:16:01: Using graphics capture
06:16:01: Trying to hook process: javaw.exe
06:16:01: Scene buffering time set to 400
06:16:01: Using custom x264 settings: "crf=10"
06:16:01: x264: VBV maxrate specified, but no bufsize, ignored
06:16:01: x264: MB rate (489600) > level limit (245760)
06:16:01: ------------------------------------------
06:16:01: Video Encoding: x264
06:16:01: fps: 60
06:16:01: width: 1920, height: 1080
06:16:01: preset: ultrafast
06:16:01: profile: main
06:16:01: keyint: 250
06:16:01: CBR: no
06:16:01: CFR: yes
06:16:01: max bitrate: 1000
06:16:01: buffer size: 0
06:16:01: quality: 22
06:16:01: ------------------------------------------
06:16:02: SharedTexCapture hooked
06:16:30: FlushBufferedVideo: Flushing 16 packets over 250 ms
06:16:31: Total frames encoded: 1747, total frames duplicated: 7 (0.40%)
06:16:31: Total frames rendered: 1761, number of late frames: 2 (0.11%) (it's okay for some frames to be late)
06:16:31:
06:16:31: Profiler time results:
06:16:31:
06:16:31: ==============================================================
06:16:31: video thread frame - [100%] [avg time: 0.498 ms] [children: 21.7%] [unaccounted: 78.3%]
06:16:31: | scene->Preprocess - [0.402%] [avg time: 0.002 ms]
06:16:31: | GPU download and conversion - [21.3%] [avg time: 0.106 ms] [children: 17.5%] [unaccounted: 3.82%]
06:16:31: | | flush - [14.3%] [avg time: 0.071 ms]
06:16:31: | | CopyResource - [2.81%] [avg time: 0.014 ms]
06:16:31: | | conversion to 4:2:0 - [0.402%] [avg time: 0.002 ms]
06:16:31: Convert444Threads - [100%] [avg time: 0.863 ms] [children: 99.4%] [unaccounted: 0.579%]
06:16:31: | Convert444toNV12 - [99.4%] [avg time: 0.858 ms]
06:16:31: encoder thread frame - [100%] [avg time: 1.36 ms] [children: 12.6%] [unaccounted: 87.4%]
06:16:31: | sending stuff out - [12.6%] [avg time: 0.171 ms]
06:16:31: ==============================================================
06:16:31:
06:16:31:
06:16:31: Profiler CPU results:
06:16:31:
06:16:31: ==============================================================
06:16:31: video thread frame - [cpu time: avg 0.141 ms, total 250 ms] [avg calls per frame: 1]
06:16:31: | scene->Preprocess - [cpu time: avg 0 ms, total 0 ms] [avg calls per frame: 1]
06:16:31: | GPU download and conversion - [cpu time: avg 0.062 ms, total 109.375 ms] [avg calls per frame: 1]
06:16:31: | | flush - [cpu time: avg 0.062 ms, total 109.375 ms] [avg calls per frame: 1]
06:16:31: | | CopyResource - [cpu time: avg 0 ms, total 0 ms] [avg calls per frame: 1]
06:16:31: | | conversion to 4:2:0 - [cpu time: avg 0 ms, total 0 ms] [avg calls per frame: 1]
06:16:31: Convert444Threads - [cpu time: avg 1.052 ms, total 3640.63 ms] [avg calls per frame: 2]
06:16:31: | Convert444toNV12 - [cpu time: avg 1.047 ms, total 3625 ms] [avg calls per frame: 2]
06:16:31: encoder thread frame - [cpu time: avg 1.128 ms, total 1953.13 ms] [avg calls per frame: 1]
06:16:31: | sending stuff out - [cpu time: avg 0.306 ms, total 531.25 ms] [avg calls per frame: 1]
06:16:31: ==============================================================
06:16:31:
06:16:31: =====Stream End: 2016-01-26, 06:16:31=================================================