Earlier quoted context omitted.
Under Siege from 2005 is such a game pitting Palestinians against Israeli military. https://www.youtube.com/watch?v=ujqrOayOLP8 Needless to say, the game pissed off more people than the airport scene in Call of Duty.
On the reverse, a gaming company with the intent of catering to the zionist crowd could create a CoD-styled game focused on slaughtering Palestinian "terrorists", and it would be a huge hit amongst American jews and evangelicals. There would be no outrage, and republican politicians who spend all of their free time railing against video games would become vocal advocates for gaming.
Please don't post flamebait to Hacker News. It leads to flamewars, which destroy everything we want here.