Wolfenstein: The New Order by MachineGames, will arrive for the Xbox 360, PlayStation 3 and PC at the end of the year, Bethesda just announced over at GameSpot. (Versions for next-gen consoles are also coming.) That's the debut trailer. The game is set in 1960 but, yes, Nazis will still be the bad guys.
That's because they won World War II, at least for purposes of this story. So B.J. Blazkowicz is back in action against the ruling order, charged with mounting an "impossible counter-offensive" to overthrow the Nazi regime.
Nazi Mechs and other superweapons feature into this alternate reality, but evidently Jimi Hendrix still was born and managed to cover "All Along the Watchtower" seven years before Bob Dylan wrote it.