You have to look at it relative to a non-binnable design, which would otherwise have conservative targets to mitigate throwing away entire chips ala traditional retail console hardware specs (i.e. redundancy in case of defects, lower clocks/voltage to encompass worst case thermal output etc).
There are trade-offs to maximize usable chips/yield.
However lockhart only needs very small GPU size (for example, 20CUs @ 1.55GHz), and the APU size is probably 200mm2 which is way cheaper than a 350mm2 APU.
I think the defected APU of XSX would be used in other place such as xcloud servers.