Play Services Updates is used to update Google apps and apps from Google Play. This component provides core functionality like authentication to your Google services synchronized contacts access to all the latest user privacy settings and higher quality lower-powered location based services.
Google Play Services is a very useful and needed app. Most games and apps uses Play Services for correct working. But sometimes they can crash or create errors in your Android system : "Google Play Services is not responding" or "Play services crashed". Those errors are usually because of outdated libraries in your phone.