I can only attest to this problem happening on the 360 version. Thus it is most relevant to this forum. A problem with one game on a specific console. This is after all not a minor bug. It causes the system itself to completely lock up. Forcing the player to manually turn the console off and back on. As far as I can tell this problem has only started within the past couple days. There have also been an increasing number of small bugs taking place in the game. For instance rubber banding, and enemies disappearing has started to happen in the past couple days.

Hmmm I don't like the sound of that :/ 

How does it compare to Fallout 3 for glitches?

In my opinion compared to Fallout far fewer, but you have to remember Fallout has a built in work around. You had the option to load a earlier save if something went catastrophically wrong. Dead Island uses a automatic save based system. So if you get screwed over it is incredibly easy for that to become permanent. For example if you die facing a zombie that you just unloaded six cleavers into, and he up and vanishes. The death caused you to save, and since he vanished there went half your inventory into oblivion.

I actually prefer manual/auto save systems myself. It really is better to be smart rather then lucky. I prefer to have a safety line just in case. Perhaps such a system would allow me to do a work around on this particular bug. Really it isn't as if such systems prevent exploiting for that matter. Players still use dropping out to dashboard to abuse the system for duplicating items. To put it another way the redundancy has no detractors. Auto saving cannot in anyway prevent system abuse, and the lack of a manual only creates problems.

UPDATE

I wanted to update everyone on what has happened since I posted this thread. I was never able to fully reclaim the character I created. However I was able to transfer the basic elements into a new game. Which allowed me to retain my characters level and story progress. Basically I lost my inventory, and all my collectibles, but I was able to get most of that back. The game allowed me to replay the majority of my side quests. Even though it showed them as being completed, and I was able to revisit main story quests in other players games. So I lost a total of perhaps ten hours, and as many levels.

Since I transferred the character I have finished leveling my character up, and have completed the game. With all that said I can happily say the issues I remarked on earlier have all seemingly been resolved. I have had no issues with my game saves. Neither have any of my friends still playing. If anything the game is running smoother then it ever ran before my mishap. The only problem I encountered was a few slow loading instances when I had really overtaxed my inventory. I wouldn't suggest carrying over five thousand items in your inventory. Honestly that isn't something that should normally happen anyway. I only ever had that much, because I was abusing a quest that allowed me to turn in a certain number of items for a big experience reward.

Anyway the developer seems to have fixed the problems, and if my comments scared you off. You should take a second look at this game. Right now it seems to be relatively bug free, and it is even more balanced now then it was before. I actually plan to buy the expansion when it comes out for this game.

I haven't gotten it yet...shipping takes a while...It's been in West Virginia for 2 days now.

I do. The US Postal service is taking their time delivering it though >_<

I think they fixed a lot of the issues, especially the PC version (the one I'm playing) seems to be working fine. I've experienced one bug thus far, in the mission where you fix the power for the lighthouse in the underground facility. When I was running back up the stairs to ground level, an invisible barrier kept me from reaching the top of the stairs and it acted almost like a bungee cord. I would run and gradually slow down until I was running in place and then get flung back ten feet or so down the stairs again.
Had to reload the checkpoint and do the thing over again so I can imagine that it could get annoying if it were to happen again but nothing game-breaking so far, knock wood.