I think Z3 has mute/unmute problem.. this morning when I went for meeting with my clients I mute my phone.. all is well, but when I set to unmute my phone, the ringing and notification is back to normal but the Games and media is shown mute..

Anyone facing this problem? please share how to fix it.. thanks..

Hm, I guess it depends on context. The 3 volume groups work good for me.

For example, on my phone (just an Xperia S, not Z). The music/media volume is always silent, but the ringing/notification is not. So when I load games, it doesn't blast anything. And I can still hear notifications and ringing which is set to lower volume. The alarm volume is much higher (so I can wake up and hear it  ).

Android somehow has this smart volume management, which is quite impressive for me. When I plug in my earphones, automatically the music/games volume is turned up and I can hear/listen to music/games immediately. Once i unplugged my earphones, the music/games volume is back down to silent.

When in the middle of a game, pressing the volume buttons will change only the game/music volume. So later if you exit the game, your ringing/notifications volume won't suddenly be blasting or too soft.

Typically pressing the volume buttons in any non-game/music app or on homesecreen will change the ringing/notification volume but not the rest. This is great, because if I increase the ringing later if I load any music or games it won't suddenly start blasting them in the office.

So imo, the different volume settings works well and not a bug.