If that's true, it's certainly not good for manufacturing efficiency, and could explain in large part why prices for the PS3 are so high... other than the greed, of course
Sounds very similar to the situation with LCD displays, and how costs were driven up as not every unit manufactured was saleable due to defects etc.
Long story short... $ony is messin' UP! Still, they'll sell... as I know some of you fanboys just can't help but give your money away. So no hopes of people voting with their wallets.
If I understand correctly, what I think is meant by 20% yield, that only 20% of manufactured chips are usable... i.e. they're throwing away 80%(!) of chips because they're defective in some way.