You can try a reset. Found under settings general reset are two options. Reset all settings does that but keeps content and media. Erase all content and settings does what it says. Try the former first then the latter. This sounds like a corruption in iOS to me rather than a hardware fault. Good luck.

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On 16/11/2013 11:59, Krister Ekstrom wrote:
Hello folks,
Aftter upgrading to IOs 7.0.4 the whole gps, gyroscope and compass has just 
stopped working. I noticed it when i tried to play Papa Sangre II and couldn’t 
turn to face enemies or doors or whatnot using Gyro mode. Today i tried 
Blindsquare and got no signal from gps and when i look around i notice compass 
doesn’t change direction. The strange thing is that everything was fine until i 
upgraded to IOS 7.0.4. What could possibly be wrong, i really hope it’s not 
hardware related.
Anyone experienced this and have some kind of solution?
/Krister


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