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Viper1 said:

Most people have stated the Wii U's online component now put it on par, even somewhat superior, to the other HD consoles.  Read up on it, it may surprise you.

And it's not M rated titles that's the problem but USK 18.  Most ESRB M rated titles are given a USK 16 rating.  Only a few get the 18 rating like ZombiU did.

I fully agree that they need to find a way around the issue but I can't understand how some people are saying the fault itself is with Nintendo when ALL other Germany online entities are subject to the same law.

That's hardly true.

Sexual themes (including nudity), cursing, low violence (next to no blood) = USK 16

Violence (extensive blood) = USK 18

Then there's the limb cutting and rag doll part which is usually enough reason to not give a USK rating.
However this is hugely inconsistent.

Some examples:
ZombiU/Dead Space gets USK18 without any changes
Dead Rising/Dead Island did not get a rating
Resident Evil 2-4 got a USK rating after cutting several elements
Condemned 1&2 did not get a rating and are confiscated !

Therefore Dead Space and ZombiU were extremely lucky IMO.
Proof that Dead Space was lucky: (http://www.schnittberichte.com/news.php?ID=1039 ) USK18 after the third try.