What's wrong with my phone?

I have a Galaxy S3 and yesterday I had an AT&T update and updated my phone. Today I was trying to play Minecraft PE but it was unresponsive (I press in one direction the block gets placed somewhere else or if i walk Steve just stops or looks up/down). To make sure that it wasn't Minecraft I played Terraria but it also unresponsive like Minecraft so now I think it's a problem with the update.

Make sure your screen isn't wet, that screws with touch reponse. Reset the phone.

Your device probably received the Kit Kat OS. Check the device to make sure.
Although I don't understand why it would affect the games. Possible to check the settings on the app's. And there's question as to whether they were downloaded from Google Play Store or from a third party website? It's possible that this could be the problem.