GoPro’s misstep with Hero4 Session pricing leads to job losses

By Trevor Mogg January 14, 2016

GoPro Hero 4 session hands on lens — Bill Roberson/Digital Trends

Perhaps GoPro isn’t quite as robust as the cameras it sells. On Wednesday, the California company forecast disappointing sales figures for the final quarter of 2015 and said that as a result it’d be laying off 7 percent of its workforce, equal to about 100 jobs.

The action-camera maker had been hoping its latest device, the diminutive Hero4 Session that launched last summer, would prove a hit with consumers over the holiday period. But the $399 launch price proved prohibitive, forcing the company into not one but two price cuts, first to $299 and then in early December to $199. For many potential customers it seems to have been a case of too-little-too-late.

The misstep clearly hit GoPro hard. CEO Nick Woodman said as much in an email to Re/code this week, in which he admitted the company “clearly made a mistake” with the Session’s initial pricing. However, Woodman added, “I’m proud of how we responded. We recognized the problem, price adjusted to $299….recognized that wasn’t enough and price adjusted again to $199 which positioned Session as the best entry-level product we’ve ever made.”

In a statement released Wednesday, the company said that during the opening months of this year it expects to spend approximately $5 million to $10 million on restructuring, though most of that will be on severance costs.

It also forecast fourth-quarter revenue to reach $435 million, down from its October estimate, which put the figure at $500 million to $550 million. Official results for the quarter will be released on February 3.

Recognizing more than ever the need to diversify its business, GoPro is developing a consumer drone that it hopes to get on the market some time this year. So far we’ve only been told the name of its flying machine – the Karma – and shown some of the footage from its on-board camera, which looked, as you’d expect coming from GoPro, pretty darn good.

With all that we know now, 2016 looks set to be a real make-or-break year for GoPro.

Editors' Recommendations

Topics

Contributing Editor

Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…

Mobile

GoPro Hero 10 Black: 7 things I love and 2 that I don’t

The GoPro Hero 10 placed in an outdoor environment.

The GoPro Hero 10 Black is the company's most recent addition to its action camera lineup. I've had a chance to spend almost eight weeks with the camera to find out if the on-page specs translate to real-world usage? Here's what I loved about the Hero 10 while using it in my day-to-day life and short travels.
Seven things I loved
More responsive
The GoPro Hero 10 is much more responsive than the previous iterations of the camera. When I reviewed the Hero 8 and Hero 9, one of my biggest concerns was usability. While the functionality was amazing, the usability was not. Well, no more.

Thanks to the new processor, the GoPro Hero 10's usability is as good as its functionality. GoPro has finally done justice to its camera. Navigating through the interface feels on par with my iPhone's camera app. The new camera was a joy to use, thanks to a more responsive interface.
Amazing photos and slow-mo

Photography

The 5 best new GoPro Hero 10 Black features I love to use

GoPro Hero 10 Firmware V1.2.

When I reviewed the GoPro Hero 10 Black in September, I couldn’t help but heap praise on it. Though it’s clearly an evolutionary update to the Hero 9, the Hero 10 goes far enough to offer very real advantages over its predecessor. Between its 5.3K 60 frames per second, upgraded image stabilization, and impressive cloud storage integration, it’s certainly the most powerful action camera available right now.

However, GoPro hasn’t rested on its laurels over the past several months. Over that time, they’ve offered major firmware upgrades and even a post-launch hardware upgrade. With the Hero 10 so dramatically changed since its original launch, it’s worth taking a look at to see what else you can expect from the camera here at the tail end of 2021.
Max Superview
The GoPro Hero 10 features a 4:3 format sensor, but most video these days is displayed in a 16:9 aspect ratio. That typically means either cropping the image or putting up with black bars on the side of the display. GoPro’s Superview mode stretches the edges of the image so that you can take advantage of the entire 4:3 sensor area, but display it on a 16:9 screen at the cost of a fisheye effect.

Photography

GoPro boosts Hero 10 performance with new firmware and Enduro battery

GoPro Hero 10 Front Screen.

One of my few complaints when reviewing the GoPro Hero 10 Black was its somewhat fleeting battery life, and though I haven’t personally encountered the issue, many users have reported problems limiting recording times due to overheating. GoPro seems to have heard that message loud and clear, as they have announced a major firmware update for the camera that aims to solve the problems as well as a brand new Enduro battery.

The firmware (which will be available by the end of October) introduces three new video performance modes designed to maximize the Hero 10’s performance in different scenarios. Maximum video performance mode prioritizes high resolution, frame rate, and image quality. Extended battery mode limits resolution and frame rate to maximize recording times and battery life, while tripod/stationary video mode provides high performance when the camera is stationary, and there isn’t any airflow to cool the camera.