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It says Software because he has it checked in. The only thing you need to focus on is that you need to select the category of games, in his case 'Action'.
After that you can see all the games in that category to the right where you can also sort them.
Here's an example from my library:
https://i.imgur.com/1NDVuEr.png
EDIT: Nevermind, I figured it out. It's unusually complicated.
2. Unsort by recent activity, because apparently it won't let you show all in one group that way.
3. Uncheck Group by Collection, (which, incidentally, is hidden in the dropdown box) for the same reason as above.
4. Click on the word "all" to show it on the right side
5. On the right hand panel, click "hours played" in the pulldown menu
This whole time I only had them sorted by last played. So of course I wouldn't know all these extra steps.