The industry body’s decision reportedly came after a heated debate involving the Nazi-killing Wolfenstein series, particularly a pair of anti–Third Reich games in 2014 and 2017 that were visibly, and somewhat humorously, self-censored in Germany in order to avoid violating a provision of the country’s constitution. Previously, video games with Nazi symbolism were heavily censored or outright banned based on the German criminal code’s Section 86a, which forbids the use of symbols, flags, insignia, uniforms, slogans, propaganda, and greetings relating to “unconstitutional organizations” (read: Nazis) in German products. In the German version of the newest edition of the game, Wolfenstein II: The New Colossus, images of Adolf Hitler were changed to remove his mustache and the swastika was replaced with an alternative symbol in the Nazi flag. The notable exemption to that rule is known as the “art exception,” which allows these symbols to be reproduced if it is for the purposes of scientific research, historical purposes or historical accuracy in media including film, books and plays. It has also affected the World War II strategy game Hearts of Iron IV, which changed art and dialogue to comply, and 2010’s Call of Duty: Black Ops, which is partially set in World War II and had to remove all “anti-constitutional symbols” on top of several gore- and torture-related aspects. The next Wolfenstein game might not even need to remove Adolf Hitler’s mustache: Germany’s Entertainment Software Self-Regulation Body (or USK), an independent, industry-funded board that oversees age and content ratings for videos games available in the country, announced on Thursday that it will now permit the sale of games featuring Nazi imagery within the country, something that had previously been banned. READ MORE: Germany Withdraws Toy UFO From Sale for Teaching Kids Wrong Things About Nazis

"Through the change in the interpretation of the law, games that critically look at current affairs can for the first time be given a USK age rating,” USK Managing Director Elisabeth Secker said on August 9. UPDATE: Some further context, courtesy of GameStar’s Sandro Odak, who tells us that Germany’s long-standing refusal to grant video games the same cultural exception movies and TV shows were allowed dates back to the court’s interpretation of a 1998 court case:

The verdict said in 1998 that Wolfenstein 3D is banned nazi propaganda (in a case against a real nazi) and they never considered it being a piece of art or culture (which for example has applied to movies).
Germany lifts a blanket ban on Nazi symbolism in video games, including the swastika.