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http://en.wikipedia.org/wiki/Image:Dimoffree.svg - that picture shows 0, 1 and 2 dimensional objects (point, line and square) it also shows our mathematical way of representing 3 and 4 (spacial) dimensional objects (cube and hypercube)

If we're considering 4 spacial dimensions, then we bump the time dimension to 5th.
So yes, they are right in saying that the PS3 can represent 3 spatial dimension, and 1 of time, but so could the PS2 and PS1, heck, I played a couple of isometric view games on the Snes, which have as much claim to being 4D as PS3 games do