As is probably common knowledge at this point, Germany is pretty strict when it comes to Nazi imagery. I hope I don’t need to explain why. Anyway, there are legal barriers to that kind of thing, although there are exceptions when it comes to things like education, science, training, and even art. However, that last part has not been extended to video games, and Nazi imagery, even for games like Wolfenstein, needs to be edited or removed or face a refusal of classification (effectively a ban) from the country’s ESRB-like body, the USK. Now, however, things have changed a little.
Our source today is a German games site called Games Wirtschaft, and we must admit to feeding the article through Google translate. Essentially, games are now subject, when it comes to things like legally dubious imagery, to a (machine translation here) “social adequacy clause.” Now, games will be evaluated on a case-by-case basis. Much like movies in the country now, games will be evaluated, and told whether or not to censor the imagery based on overall context.
The article here speculates that content such as indie games with serious narrative elements will likely get by evaluation without any problem. Games like Attack 1942 and Through the Darkest of Times are cited as being likely candidates to escape evaluation unscathed. Game like Call of Duty may be less safe, although distinctions may be made between single-player, story-based campaigns and massively interactive multiplayer modes.
Source: Games Wirtschaft