The "alter" works fine on my local database. Try adding some more error checking:
<?
include("dbpasses.inc.php");
mysql_connect(localhost,$username,$password);
mysql_select_db($database) or die( "Unable to select database" . mysql_error() );
$query="ALTER TABLE gamefilez ADD COLUMN TextColumn VARCHAR(50)";
mysql_query($query) or die( "Unable to run query" . mysql_error() );
;
mysql_close();
echo "New field added";
?>