First of all, yes, despite the initial mix-up, it is coming to the PlayStation 3. Publisher Deep Silver has slapped a late 2011 release date on the title.
Unsurprisingly, Dead Island takes place in an island which has, unfortunately, been over-run by dead things. The title's not particularly ambiguous, but the gameplay is. According to the press release, Dead Island will have a "heavy focus" on melee combat. While guns exist, ammo will be scarce, forcing players to make do with the objects in the world. Blue-prints for good survival horror right there.
In addition to the game's melee combat, it will also sport RPG innards — stuff like character classes and skill development — alongside four player co-op.
We've embedded the trailer after the jump just in case you missed it.