npm update seems to just update the packages in dependencies, but what about devDependencies.
Right now you can install
If you are using outdated npm version it might be the problem. So before any other commands execute:
sudo npm install npm -g
or (if above doesn't work):
sudo npm update npm -g
Then relaunch the console (in order for changes to take effect).
Now you can check your new npm --version and if it is up to date execute:
npm update
or (if you prefer):
npm update --save-dev