For AMD's "sweet spot" die strategy to catch up to NVIDIA's "as big as it can be made" strategy.
Prior to AMD acquiring ATI, ATI didn't care for "small die strategy."
We got:
9700Pro (best GPU at the time)
9800Pro/9800XT (best at the time)
X800XT PE / X850XT PE (arguably better than 6800U, but can be easily considered at least as good)
X1800XT PE/X1900XT/ X1950XTX, etc. (arguably better than 7800/7900 series)
* ATI made a crapload of $, with a market cap the size of AMD.
** ATI was viewed as a premium brand.
After AMD acquired ATI and decided to focus on the small-die strategy:
2900XT (huge flop)
HD3870 (huge flop)
4870, 5870, 6970 (2nd best, relegated to competing on price).
* AMD's GPU division struggles to make $
** AMD's GPUs are viewed as a price/performance brand - brand value erosion
*** AMD's discrete GPUs continue to lose market share
There is no evidence at all that AMD's 'small die' strategy is working, not financially, not from a strong brand image perspective, not from market share. One might conclude ATI knew how to both make its videocards and manage its GPU brand MUCH better for us gamers. My gut feeling is the main reason AMD's upper-level mgmt is forcing the GPU guys to focus so much on performance/watt is because their
APU strategy depends on it. NV doesn't make APUs, so they can make GPUs with as large as they need to. The end result has been NV beating AMD with 8800GTX, GTX280, GTX285, GTX480, GTX580 for 3 consecutive generations....that's got to hurt AMD's brand image in the long-term.
That's why I don't understand why people keep bringing up that 'small die size' is better. If someone wants to focus so much on advantages of smaller die sizes, they should create a separate thread.