In specifics, the government is looking to ban any software "where the main part is to realistically play the killing of people or other cruel or un-human acts of violence against humans or manlike characters." Basically, kiss all those lovely shooters goodbye -- that is, if the delay spurred by the petition won't change the government's mind.
Considering Germany is a place that enjoys the sound of the banhammer falling (examples: coked up Red Bull, genetically modified corn products and even 26 years of its own history have all been outlawed), there's no guarantee the bill will be deterred. In fact, the source Gamezine notes Germany passed the internet censorship bill (which was a similar case that had double the petitioners) earlier this year.
[Via Game Politics]