I started playing Fallout 3 again just recently.
In fact I played it some today, before the update, I had no problems.
I go start playing again about 15 minutes ago, I get the message telling me to update, so I do.
And I start playing and the camera will not move.
It will move with the player as they walk, but I have no control over the X or Y axis.
I've [censored] things to see if it was somehow a controller problem, the right stick still works fine.
After a reboot, still nothing.

Last I checked, weren't updates supposed to fix things, not make new problems?

what patch? There is no patch for FO3.

Generally yes.

However, one question jumps to mind.

What update?

Fallout 3 hasn't had a patch for over a year, nearly two years. There's been no word from Bethesda on an update and no one else has mentioned a game update nor this error.

It's more likely an update to the console itself.

See this is pretty much my thinking. I was playing it fine earlier, but JUST tonight it apparently had an update. At least that's what the console told me when I tried to start playing again like 45 minutes ago.