Android Places API: Google Play Services Out of Date on Emulator
I had the same issue, and had to move down to API 21 emulator image with google apps. That one is more up to date, and works.
If the SDK Manager shows that you already have the latest version installed, you can simply duplicate your emulator definition.
The duplicated emulator will be loaded with the latest version of the SDK.
I had the same problem and right now I "updated" the version to 6774480 invalidating the caches and restarting, then i "downgraded" the dependecies compile 'com.google.android.gms:play-services:6+'
and it works, I know that is not a real solution but is a bad way to make it works so I can test my app
I have a similar problem when I use Google-Play-services on android wear, then I solve it by updated my android wear app version. (because newer android wear version include newer Google-Play-services)
This problem cause by the version of Google-Play-services on your device is too old, you should update your version of Google-Play-services on your device.
For the emulator, you need to update Google-Play-services on your emulator instead of update your SDK.