Is it wrong to have cats live in a shed?

My friend has two cats that live in this shed, one side of it they can see outside but they are always in there, concrete floor maybe a few blankets, food, litter, no toys. I keep telling my friend it doesn't seem right, cats need to be played with and have company, they need to be with a family that will actually care for it. Am I overreacting?
Is it wrong to have cats live in a shed?
Post Opinion