Use of xcassets is the new standard as of Xcode 5 and iOS 7. Import images by clicking on the blue folder called "Images.xcassets" then click on the small "+" plus sign at the bottom of the window that appears. Now choose "Import" to put images in there.
This is also the new location of the icon and launch images instead of the standard target->general location, although this is where you still have the option to not choose "Don't use asset catalogs".
It's really helpful because you'll only see 1 image name instead of duplicate names with extensions like "@2x" and "-568h@2x".
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