In this in-depth interview with Gamasutra (May 1), game developer Peter Molyneux explains how he approaches offering players deep moral choices:

PM: What’s fascinating about it is that when we thought about good and evil, it’s so tempting to say, “Well, good is saving lives, and evil is hurting lives and killing people.” But actually, I think where the real emotion comes is when you really start testing people.

If I said to you, “Your family is over there. What would you do to save them?” “Well, I would do anything.” “Really? Would you really do anything? Would you actually kill a thousand people to save your family? And what does that say about you?”

I think, finally, that decision made people think, because it forced them to think, “My goodness, my natural reaction is of course I’d save my family. Of course I would save the people I love.” But actually, when it comes down to it, would you? Would you sacrifice everything for that very selfish act of having what you want? There are a lot of philosophical questions that come up in your mind when you’re doing that.

David Nieborg had written an excellent review of Fable 2’s moral dimensions earlier.