As told by Simple Plan do like:
In Eclipse:
Eclipse -> import -> existing android code -> browse -> navigate to google-play-services_lib FOLDER (android-sdk/extras/google/google_play_services/libproject).
then, select your project--> right click -> properties -> android -> libraries, add -> select the project you just imported -> OK
UPDATE:
In Android Studio:
Simply add this line to build.gradle and click on Sync
compile 'com.google.android.gms:play-services:8.4.0'
And also make sure to add this line at end of the build.gradle (I have no clue why putting this at the end (and not at the beginning ) solves the error.)
apply plugin: 'com.google.gms.google-services'
For more info refer this link
