Of course, a "play test" is not an unit test, or an integration test (and is only mildly similar to an acceptance test.) Playtest-driven development would be an entirely new affair, likely involving gameplay freeze-states and kept in version control, and a constant numerical analysis for the player's emotional state (perhaps using some sort of face-recognition) given alternate code paths.
Test driven development or more simply unit testing code, is writing automated tests that ensure your code at the smallest unit you can access ( e.g. a single method ) is doing what you expect under all conditions.
See: http://en.wikipedia.org/wiki/Test-driven_development and: http://en.wikipedia.org/wiki/Unit_test
That having been said, TDD and automated testing can definitely make some headway into game development, but there are a whole host of challenges and questions to surmount there, especially for code-bases that are going to get stripped down to bare-bones every 1-3 years for a new game, if they get reused at all, so the tolerance for hacky code is quite a bit higher.