Yes, you are not hallucinating and you have not misplaced your glasses; that is a "Figurine" of a limbless, headless torso of a zombified girl in a bikini. According to Deep Silver, this figurine is a Dead Island-esque take on, "an iconic Roman marble torso sculpture." Below is Deep Silvers justification for the creation of this figurine, as stated by Deep Silver sales and marketing director Paul Nicholls;
"We wanted to provide a unique collector’s edition that was utterly ‘Dead Island’ and would make a striking conversation piece on any discerning zombie gamer’s mantel."
Now, I will admit; I am a male. I have the same fascination with the female "Anatomy" that most other males have. But I can't be the only one who thinks this figurine is wrong on several levels. While I will not accuse this figure as being sexist as I feel I have no right to do so, I will say that creating an extreme male-targeted piece of memorabilia just to get your game noticed is not helping anyone, especially those advocating that video games do offer more than male fantasies.
UPDATE: After this story caught wind of the larger gaming communities and Deep Silver realized that the "Figurine" might be in terrible taste, they have issued an apology on Twitter;
We deeply apologize for any offense caused by the Dead Island Riptide “Zombie Bait Edition”, the collector’s edition announced for Europe and Australia. Like many gaming companies, Deep Silver has many offices in different countries, which is why sometimes different versions of Collector’s Editions come into being for North America, Europe, Australia, and Asia.
For the limited run of the Zombie Bait Edition for Europe and Australia, a decision was made to include a gruesome statue of a zombie torso, which was cut up like many of our fans had done to the undead enemies in the original Dead Island.
We sincerely regret this choice. We are collecting feedback continuously from the Dead Island community, as well as the international gaming community at large, for ongoing internal meetings with Deep Silver's entire international team today. For now, we want to reiterate to the community, fans and industry how deeply sorry we are, and that we are committed to making sure this will never happen again.
There has been no official statement on whether or not the figurine will be removed from the Zombie Bait edition of Dead Island: Riptide.