In one scene in Unbroken, the prisoners should be carrying coal, but they stop and watch Louis' game.
Actually the Japanese conducted the game on Louis, if he drops the log he is carrying then they will shoot him.
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If the Japanese are the ones running the game, a game that involves shooting the looser, it's not a game, it's a punishment or lesson. They let the rest watch so they learn that either you do what you are told, or you will be killed.
Public humiliation and punishments are a common tactic in keeping prisoners demoralized and compliant.