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Yes it does. For all file types too, so it could be a Word document or a web page of an intranet being delivered by SharePoint.
All these files can have version control and use both minor and major versioning (0.1, 0.2, 1.0, 1.1, 2.0 etc). You can also set how many versions can be retained. Version control is enabled at the library level but some libraries such as web page publishing libraries have it enabled by default but it can be disabled.
A word of warning, a version is a complete file. So 5 versions of a 5mb file is 25mb of storage in the backend content database. So make sure you scale your storage for your versioning requirements.
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