However combining some of the flexibility and workflows of git with the ability to deal more efficiently and effectively with large asset files is something that a hell of a lot game engineers would be interested in. And having the virtual checkout as a feature out of the box for folks used to half terabyte repo sizes is definitely a huge plus.
This announcement is definitely a big deal, and if the promises for lore actually measure up, we could be seeing the beginning of a switch over to open source version control for larger asset heavy games where git was still not a great fit.
Will be interesting to see what the public code hosting platforms do (github), and whether there will be any major structural changes to git (I'm thinking not likely). I wonder if Epic will make a play to take business away from github or gitlabs.