You would think that, but that doesn't appear to be the case. There are a plethora of GoPro clones available now. I count over 50 distinct brands offered via Amazon Prime and hundreds of models filling the spectrum. The "action camera" has indeed been commoditized and GoPro layoffs are not surprising.
My feeling is they need to come up with something radically new to compete now. No idea what it could be. It'll be interesting to see how this market evolves.
They have trouble keeping up with the pace of their current products.
Plus, they aren't really innovators.
Having 3d and 360degree models would be a future possibility - team up with Rift etc.