It's not an update, it's just a smaller watch.
Like galaxys says looks like the gear sport.
I think like with everything they will make a new version, and as they just changed the watch names it will definitely be named galaxy watch 2.
But it will most likely come out in 2020 with the next big phone.
The question now is, will it have that much better specs, include new features or improve enough things to make it worth buying right off the bat?