Censoring the nazi from media like games is like ireland censoring the British flag from movies and games. Absolutely ridiculous and I'm glad they've seen sense. Germany is progressing.
banning symbols isn't really uncommon in the world:
Also as mentioned before it was never banned per se:
"(3) Subsection (1) above shall not apply if the propaganda materials or the act is meant to serve civil education, to avert unconstitutional movements, to promote art or science, research or teaching, the reporting about current or historical events or similar purposes."