First of all: Thanks for the heads up. A few remarks though:
1) Defaults should all be set to max privacy. See EU privacy laws - could invite trouble otherwise.
2) "My activity" and "my online friends" should be split. It's fine if I decide to reveal my own stuff - it's not ok to reveal other people without asking them first.
3) Please do not only announce this on the front page - changes in privacy settings are like TOS changes. Every user should be notified. Send emails
to every account (it's not promoting games, so it should be fine, even if they unchecked email notifications). Some people don't frequent the site very often, they could miss the announcement (or do you want to leave standing there forever?). This is especially important if you decide to leave some defaults at "not max privacy". If the users miss the email - well the problem is on their side - at least you tried.
Hidden games must not be shown if a customer chooses to show others what games they have.
Now we also need manual sorting back, so I can put Softporn Adventure and HuniePop at the top of my list...