Picture quality - not clear

Bought this cam few days ago. Updated the firmware to 4.10.1.27 .it saids I have the latest firmware. Today I tried put it on the top of my cabinet facing the living room and kitheki area. As you can see we all look blurry in the picture. Why is that?

 

I think it’s an affect of the bright background and dark foreground. Also, check if it is set to HD or SD or 360p.