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So how would you version a game that needs assets? These files must be versioned but can be very big, for example long cutscene videos.

Some projects need the ability to version big files, there is a good reason why perforce exists and is widely used in the gaming industry.

I am not saying that it is a better UX, but hashed/versioned blobs on S3 would mostly work depending on tooling integration.

Isn’t that essentially what git lfs is?

I believe so, but with different UX. In almost every case I expect git lfs to be better, but I can see reasons to use more custom flows.

That's building a custom version control on top of the version control you're already using.

not really, it is like building a custom storage layer for your VCS.

you are still relying only on git as a source of truth for which artefacts belong to which version.