Right. But when you change one thing in the the PSD git can't do a diff and store the diff. Which means you now have basically the same 500meg file duplicated

Right. But when you change one thing in the the PSD git can't do a diff and store the diff. Which means you now have basically the same 500meg file duplicated. SVN and the like will attempt to store the binary deltas instead of duplicating the files. I don't believe git can actually do this due to the way branches / git itself works (it doesn't have a simple #1 - #2 - #3 ... #n commit chain setup) There are plugins for handling binary assets better but they aren't great. and/or it just makes it less intuitive for the non-programmers which really defeats the whole purpose. I absolutely _love_ git and I'm 99% sure this issue will be worked out at some point. I've seen teams just use git for the code and then use something else for art assets (alien brains or something).