Fable

• The ethics of game design has entered a new era in which the developers offer the players ethical choices of their own. In games such as Fable, where you can become a hero or a villain one choice at time, Molyneux puts the ethical choices in the hands of the player. You can slaughter an entire village, but the consequences come back to haunt you. Word will spread about your reputation and no one will trust you anymore. People will recoil in fear. Or, if you choose to be good, your good deeds can reap rewards from total strangers.

• He had to restrict the kind of activities the players could engage in because he knew that even with the M rating, the game would be played widely. Hence, he took children out of the game so that villains couldn't slaughter kids at school.

Fable is a good example of a contrast of ethics. Molyneux wanted to create a game to examine peoples ethics and the decisions they'd make in certain situations, but he obviously had to limit those options to fit the audience and consumer.

http://www.gamasutra.com/view/feature/130594/ethics_of_game_design.php?print=1