Jesus Christ, i'm too old for this shit! 
@Alidar:
Well, when both teams play out a full game + Extension and neither side wins a result must be somehow produced. After 120 minutes of intense playing having the players run and fight for another 30 mins is just cruel so penalty kicks are a good way.
It is equally both mental and skill that decides it but it's the most nervewrecking thing to see and in this case, Germany vs. Italy it was especially brutal (i can't remember such an intense penalty kicks for a long time).

@Alidar:
Well, when both teams play out a full game + Extension and neither side wins a result must be somehow produced. After 120 minutes of intense playing having the players run and fight for another 30 mins is just cruel so penalty kicks are a good way.
It is equally both mental and skill that decides it but it's the most nervewrecking thing to see and in this case, Germany vs. Italy it was especially brutal (i can't remember such an intense penalty kicks for a long time).