The error apparently only applies to North American users, who got early access to the game on the 6th September. Problems with the EU version are expected to be ironed out ahead of its official release on 9th September.
Techland has released the following statement:
"We deeply regret that an incorrect version of Dead Island was inadvertently made available to players on Steam launch in North America. We are very sorry for any issues you may have experienced while playing the game - the correct, patched version will be made available to North American players ASAP."
Some players are also reporting, via the Steam forums , that the same applies to the PC boxed version of the game. Some users believe that Techland had accidentally released an early dev/beta build of the game, which featured control problems and clipping issues.
It's great that it's all going to be fixed so quickly, but how on earth do you release the wrong build? Techland must be mightily embarrassed today.
So far, Dead Island has received mixed reviews, with Edge rating it 3/10 - and at the other end of the spectrum, Game Informer awarding it 85%.
Update: The patch is available for North American gamers.