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I will explain that more clearly. If I install Service Pack 3, do all the programs installed on my computer and other games, pictures, videos etc get deleted and Windows goes back to its "stock" version? Or does it just stay the same as it was?
While everything hamluis said is 100% correct, there is never any harm in backing up critical data before performing a major system update (such as installing a service pack) or a drive level operation.