My son's new xbox 360 game says I need to update. The console is not even a year old yet. It gives me the option yes or no. If I press yes, will it automatically update? By the way, I asked at the store if it was compatible and they said it was.
Games will periodically get fixes for bugs and glitches that might be in the game, they might also apply graphical updates and performance updates (reduce loading times by making save files smaller for example), it has nothing to do with the console's age (i get them on my Xbox 360 slim).
They won't effect gamerscore, profile settings or anything else along that line, if you press yes then updates will be applied and then you will be able to play it, you will be asked weather to install an update or not for every update, although i can't remember if OS updates prompt you.