Yes, that's dithering. You don't see it on any machine since last gen other than Nintendo's though, because when you can display 24 bit images, you don't need dithering. Well, you do, but when done you can't see it. Nintendo's hardware has a 16 bit mode, with 32,000 colours that has to use dithering to approximate in-between colours, and to provide transparency. If you look at this picture you'll see it very clearly.
You won't have seen that sort of rendering on a machine for years! (unless you had a GC!)
You won't have seen that sort of rendering on a machine for years! (unless you had a GC!)