I have no idea about the gameboy die size, but I think that the smaller 8-bit intel chip had 3 μm die, witch is 1000 times bigger than the size you used in your hypothetical SOC, so the power gains would be at an amazing scale.
(Gameboy used a sharp processor with other architecture, but I'm ignoring this.)
Also, I read a time ago that past a certain size, shrinking increase rather than decrease the power consumption. I don't know the size that it begins to happen and I don't know why either.