I have gone through many questions like this on Google Play, I am using Android 4.2.2 API 17.
My app requires Google play services 8.1 , It compiles fine and when it runs on emulator it shows message that 'You need to update your Google play services ' ,
When I click on update nothing happens,
How can I update the Google Play services without downloading any latest API version ?
To update Google Play Services on your Android device, head to the "Apps & Notifications" menu in your settings. Google Play Services let your Android apps connect to the internet and communicate with Google. Updating Google Play Services can fix app issues, and help your Android device run faster.
Update On 18-Dec-2017
You can update Google Play Services via the Play Store app in your emulator just as you would on a physical Android device from API 24.
check Emulator new features added with stable update from Android Studio v 3.0
Google Play Support - From Google : We know that many app developers use Google Play Services, and it can be difficult to keep the service up to date in the Android Emulator system images. To solve this problem, we now offer versions of Android System Images that include the Play Store app. The Google Play images are available starting with Android Nougat (API 24). With these new emulator images, you can update Google Play Services via the Play Store app in your emulator just as you would on a physical Android device. Plus, you can now test end-to-end install, update, and purchase flows with the Google Play Store.
Quick Boot - Quick Boot allows you to resume your Android Emulator session in under 6 seconds
Android CTS Compatibility
Performance Improvements - With the latest versions of the Android Emulator, we now allocate RAM on demand, instead of allocating and pinning the memory to the max RAM size defined in your AVD.
Virtual sensors
Wi-Fi support
GPS location and Many more...
OR
Update this SDK Build-Tools and Android Emulator to latest and this alert message will not come again,
Settings --> Android SDK --> SDK Tools(tab) --> Android SDK Build-Tools
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