Privilege as a concept comes from the Sociological studies of racism and prejudice. By itself it has nothing to do with Feminist Theory or theories of Patriarchy (Which is not taught by the by in any Sociological classes... Because Patriarchy is not a Sociological concept, but a Feminist Theory Concept.).
In fact, under standard Sociological versions of Privilege, we find that one's skin color is far more powerful in stating privilege than one's gender is. Black males, for example, have it far harder in our society than white females do. White females experience far greater Privilege than Black Males do. A Black woman, therefore has one of the least amount of Privileges in society, a gay black woman even more so.
This, however, as a concept was never intended to be wielded as a cudgel to make straight white males feel guilty, or to feel terrible about themselves. Far to many in the gamer circles lately are taking this discussion of Privilege as using it as almost a religious experience, or way of feeling smug to look down on others.
It should not be brought in a manner like I've seen it many times in this thread. Telling straight white male gamers "it's going to hurt, but you have an unfair advantage, and you just have to deal with losing your Privilege." The Sociological theory never intended that, and for gawd fucking sake people, that's the worst way in the world to even try and get someone to accept the concept in the first place.
Privilege, while an important concept, is more of a noun, than a verb like it's being used. "Check your Privilege" is probably one of the worst phrases to come about in the goals of gender and racial equality.
Instead it should be illustrated in the manner of things such as "Don't you think it's kinda horrible how African-Americans get harassed by the police more than anyone else does? As Whites, we don't have to put up with that same sort of thing."
Or in Videogame context
"Don't you think it's kinda sad, all these games keep having us murder our girlfriends lately for drama? Huh, you wonder why they never flip that stuff on it's head? What do you think would happen if a game had us playing girl characters murdering our boyfriends because of stupid reasons? We've don't have to put up with that as much...cause we're guys. That's a Privilege."
Now on the whole of characters being sexualized...I have very strong feelings about this. I don't agree with many of the current thought out there that says having sexualized characters in a videogame is a bad thing. That brings up a negative view of sex, something I'm vehemently against. If anything, I would prefer more characters, in T+ level games made sexy... Sex is awesome, and a beautiful thing, and being sexualized does not inherently remove someone's value as a person (Unless that is ALL the character brings to the table, is being a fuck object, and even that gets complicated when you bring up the Prostitutes in GTA, that is just being a reflection of reality and is an entirely different discussion.)
But bring on more characters like Kratos, Nathan Drake, Solid Snake, Adult Link, and other male characters I've had my female game playing friends find sexy. There's nothing wrong with having a character be sexy.