While I do agree that AMD, Sapphire, and XFX should bring small cards to the market, I think the main issue is that Sapphire and XFX did not see the kind of ROI that they would have liked with their small cards. The small cards ended up being more expensive than their full length equivalents much of the time (similar to the R9 Nano vs. R9 Fury pricing). EVGA, however, have been turning out small cards for a while now and can just continue to iterate on the their existing tooling, again.
Both of those statements are not true.
1) The R9 Nano was more expensive because it was binned because in order to fit into that form factor and TDP.
2) The R9 Nano also had a pretty sophisticated cooler. It had a vapor chamber + heatpipe design. It had to dissipate twice the amount of heat as the 470.
It is merely a matter of shortsightedness.
1) XFX spent the time to develop a single fan model, so they have one extra SKU, and a line assembly devoted to another product. Their previous cards have not had a single fan version, so this is a new design.
2) The ITX version should theoretically cost just slightly above a reference blower version. We're talking about a single fan, 175mm, two heatpipe design, just like the XFX single fan,... however since it is smaller it should be a bit cheaper as you require less material.
3) They can use the reference board design, saving money on developing their own board.
4) Now they actually have a card to battle NVidia's sub 180mm cards, while spending no more development or pricing vs their single fan version.
For sapphire, sapphire already got a cooler designed for it. Cut out a couple heatpipes. There's not a huge difference between boards... they're pretty much the same. You got a chip, and some VRMs to cool.
The below 180mm market is left for NVidia to dominate freely. No one seems to respect how much sales the 1060 SC gets compared to its longer version. The XFX Single fan is barely cheaper, yet fails to be in a small form factor required for prebuilts.
The 1060 SC is clearly the favorite among EVGA's 1060 offering if you check newegg.
And then you got zotac, with their shitty 1060 mini cooler..
Within companies that offer a mini version, the mini version sells better than the dual fan version. If anything, their ROI analysis is backwards. The smaller 1060 is the best selling one.