So when you run across instances like this, what do you do? I'm not required to engage with it. Like, there isn't quests or anything but how do you handle video games and following Christian ethical standards?
I've dealt with this situation before with a game that involved witchcraft in the actual dynamics of the game, meaning required, twice. God spoke to my heart and asked me how much I loved Him. I said done and trashed them, even being very heavily invested in with extremely competitive stance in one.
With that said, my opinion is that you said it yourself there, "I'm not required to engage with it." 1 Corinthians 10:23 says all things are permissible but not all things are beneficial, or helpful. We are also called to be in the world, but not of the world in John 17:15 and John 17:16. Lastly, Christ said we are the light of the world, and that we are not meant to be hidden away but like a city on a hill in Matthew 5:14.
Daniel lived in Babylon and was immersed in a world full of witchcraft, but he rejected particular things that he felt dishonored God like eating food offered to idols. I think the entire world is Babylon in that specific sense and we are in that situation now and so long as it is not violating your conscience, I think you are good to go (you are obviously tuned in with God that there are no-go zones from the way you speak). (Romans 14:23)
I have used a few games as platforms to spread the gospel, even posting Scripture on my profile. I say simply have a little talk with God about the games and pray about them, and during that conversation, like He has with me, I think He will guide you into what is acceptable and unacceptable. Some people will tell you it is black and white, but I don't think this is the case. We are children, Sons and Daughters in Christ, and in that we are meant to be more than robots. God made you and I don't think He wants all of us conformed to a cookie cutter shape even being conformed into the image of Christ. The image of Christ, the image of God is love (1 Timothy 1:5 - 1 John 4:7 - 1 John 4:8). We can all look like Christ in His love to others without being robots or cookie cutouts.
Just my two cents on the matter in the pot, but I've had experience in this and found that God showed me what was not ok, and what He not only didn't mind but helped me in winning the games (and yes I actually believe that, call me crazy but He helps me with everything, I wouldn't be ok if He didn't).
Do everything to the glory of God, even if it is playing a game (1 Corinthians 10:31). Love God, love people, be yourself.
