Firmware updates automatic?

The other day I read in a book copyrighted in 2005 that the burning of slideshows may fail and the computer's drive may be damaged if certain firmware updates have not been obtained.

What I am unclear of is whether going to Apple's Software Update feature automatically encompasses the firmware aspect, or is this separate and distinct from whatever upgrade comes from, let's say, updating iPhoto or iDVD when your Mac indicates they are available? Thanks for any input.