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Turkish said:
"at full floats, we have 4.2 teraflops. With half-floats, it's now double that, which is to say, 8.4 teraflops in 16-bit computation. This has the potential to radically increase performance"

The hell does that mean, why run at "full floats" at all if half floats increase performance then.

Half, single , double describe the accuracy of a decimal representation. The more bits you have the more information you can store in a variable and the more accurate your decimals are in calculations. But since gaming is such a high performance task the difference in performance between using a float(single) and a double can be significant. A half might not have enough information (at 16 bits vs. 32 bits) to perform the tasks that game developers need to perform accurately.