This video is called The Hidden Massacre of Fallujah.
From Asahi Shimbun in Japan:
Under criticism, Konami ditches realistic “Fallujah” videogame …
Konami had planned to put the game on sale in or after 2010.
However, bereaved families of soldiers, retired troops and citizens’ groups in the United States and Europe criticized the game as in poor taste and insensitive.
The fighting in Fallujah in November 2004 was among the most intense after the U.S.-led war against Iraq‘s regular forces ended in 2003. More than 2,000 people, including many citizens, were killed in the street battles over several weeks. …
The reporter [Jamin Brophy-Warren of the Wall Street Journal] also said several thousand photos, including satellite images classified by the U.S. military, were used in the production of “Six Days in Fallujah.”
“We think Atomic Games used a network (to produce the game),” the Konami official said. “But we don’t know the connection (between the company and U.S. military forces).”
Death toll in Iraq: here.
An iPhone game in which users act as an “all-powerful god that rules over the primitive islanders” has caused a stir: here.