I don't know why people say this. There were all races in Germany's forces depending on unit or where the unit was including blacks and arabs in the SS.
But yeah, the games make it ultra retarded.
Balkan Muslims from Croatia and Bosnia were formed into SS units, yes. Arabs, some small units were formed for propaganda purposes, although hundreds of these ex-SS Muslims later went to Palestine to fight in the 1948 war. Generally they were of such poor quality that they were only used to terrorize the Serb countryside to discourage partisans.
DAK Wehrmacht units might have used a few captured ex-South African Hiwis who were Black, but there was no large scale recruitment.
Captured Indo-Aryan Hindus were recruited, but only a few thousand were interested in switching sides. And there were some cases of Asiatics who were captured in the USSR, who became Hiwis, then were entrusted to carry arms and ended up fighting the allies in Normandy. Yang Kyoungjong is the most famous one.
Otherwise, Estonians formed a decent quality SS division (20th SS), as did Scandinavians (5th SS Wiking) the French (33rd SS Charlemagne) and there were even a handful of British. Many of the early SS divisions recruited a large number of Europeans who hated communism...possibly explaining what happened after the war. Later on after 1943, the SS started forming terrible quality, high-number divisions out of anyone they could, including Soviet prisoners - and a large number of Ukrainians. They were generally as terrible as the original divisions were excellent.
Finally, Italy, Finland, Hungary and Romania were Axis partners already, and contributed large numbers of troops under their own flags; the Spanish sent the volunteer Division Azul..... so yes, people from all over Europe were part of the German war effort, and many were inducted into the SS, although the Wehrmacht had different -more strict- ethnic qualifications.