GA Source has posted a quick Q&A with Mortyr developer Mike Pearson about the controversy surrounding the game, in particular the game's packaging. Here's an excerpt:

Think of the subject matter and how difficult it was to convey the story with this subject matter. As it is, you've got a German officer's helmet with a bullet hole going through it and a pool of blood. To me this thing screams shooter, and guess what you get to shoot? Nazis. Not demons or aliens, but Nazis, mankind's worst enemy, a real quantifiable evil.