Shivering Isles could be the first and last full expansion Bethesda releases for Oblivion. The developer has said that Shivering Isles is "the only expansion we have planned".
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According to development team making Two Worlds for the PC, XBOX360 and thats right PS3 "Oblivion" is completely nice, but we can do that better. Some hefty words of bravoda right there, but it looks like they are backing up there words so-far according to Heiko who got some hand on time with the PC version. Not only did he witness green hills, dense forests, swampland, picture-beautiful beaches, white glaciers, detailed vegetation with high draw distance, detailed animations using Motion Capturing and impressive weather and night and day cycles.
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UPDATE: Bethesda's Pete Hines offered us the official response to this issue:

"We have verified there is a problem that can happen on the PC and we are still looking into whether it is possible on 360, since we don't have any reported cases on that platform so far and haven't been able to replicate it ourselves on that platform. We're testing a fix for it right now and hope to have it out as soon as possible. When we have more info, we'll let folks know."
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Apparently a new bug has been popping in Shivering Isles and for the time being there is no way around it. Joystiq reports the problem has been determined to derive from six scripts which control the patrolling patterns of certain guards. The scripts, which run even if you are not in the area, exhausts the internal allotment of identification numbers which are assigned to every object in the game (e.g. dropped arrows, weaponry). Once all the space is full, newly created objects disappear from the game world.

The bug will occur if you have Shivering Isles installed, whether or not you even access the content. It will rear its ugly head 50 to 120 hours within gameplay, depending upon your framerate (we're not sure if this is hours of play after installation of expansion or total play time). The Xbox 360 version, running at 30 frames per second, is expected to hit the bug at 150 hours.
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Two of the most anticipated Xbox 360 games are previewed in the latest issue of 360Zine, the free Xbox 360 magazine. The GTA IV trailer is taken apart and analysed by their gaming experts to see what clues it offers, and they follow up on the GDC revelations about Fable 2. Elsewhere in the issue, there's an exclusive developer interview about the Xbox 360 version of Command and Conquer 3, plus reviews of Shivering Isles for Oblivion, TMNT, Earth Defence Force 2017 and much more.
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Its 993.75MB and 2400 Microsoft points.

Enjoy Oblivion fans.

You might have to go to "All downloads" Section.
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Bethesda's upcoming Elder Scrolls expansion pack on the 360, available only by download, will be double the cost of existing Xbox Live titles.

The Shivering Isles will set you back 2,400 Microsoft points, or about £19.35 for those of us still using real money. Previously the most you could pay was 1,200 points for the likes of Bankshot Billiards and Lumines Live.

SPOnG's not complaining, however. Bethesda's promising 30 hours of gameplay in the expansion. Further to that the PC version (which will sell through high street retailers) is going on sale for £19.99. Bethesda isn't ripping you off, here. This could mark the beginning of a worrying trend for retailers, however.

This is the first time a game of this size has been offered through Xbox Live. SPOnG asked a contact in retail how they felt about it. "That is quite worrying, if it's the start of a trend," SPOnG was told. "As this is the first of it's kind I'm not too worried in [i]this case. And I do think that people like to physically have something, like with CDs. But if more developers do this it could be a problem."
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Bethesda has revealed that the Xbox 360 version of Oblivion expansion Shivering Isles, which to date has only be given an Xbox Live Marketplace release, could very well hit retail. Raising hopes for Oblivion fans not hooked up to Live (though you should be by now, frankly), Shivering Isles senior game designer Bruce Nesmith told Gamertag Radio that an Oblivion compilation pack is planned. "Eventually we will publish a complete version, a Game of the Year or Special Edition - I don't know ... » Read More

In a recent interview with Gamertag Radio, design director of Oblivion Shivering Isles Bruce Nesmith let out some interesting details. When asked how Oblivion fans who don't have Xbox Live could get the Shivering Isles expansion pack, Nesmith admitted that they were working on a retail version. According to Nesmith, there will be a new special edition of Oblivion available at retail that will include all of the previously released content including the new Shivering Isles expansion. He also went on to say that there will be more downloadable content for Oblivion in the near future.
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Today Bethesda announced the price and release date for the latest expansion to its epic RPG landscape, The Elder Scrolls IV: The Shivering Isles. Players can download the expansion from Xbox Live the week of March 26 for 2400 Microsoft Points ($29.99).

Also, a Shivering Isles trailer will available on Xbox Live later today, along with a new theme and pic pack.
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You read it right. UK's Xbox 360 Gamer mag did certainly have an exclusive hands-on access of The Elder Scrolls IV: Shivering Isles expansion.
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"We get asked that a lot," admitted Pete Hines, Vice President-PR/Marketing for Bethesda, when Pro-G UK asked him if the company had any plans for an Elder Scrolls MMORPG.

The answer is no, not really, Pete explained his opinion that they couldn't do an Elder Scrolls MMO "unless it was with some fresh idea that no one has ever tried before." This isn't an unqualified "no," though. "Certainly, there's a chance, it's something we've talked about, but it's not anywhere in our immediate future." The key is to come up with that "something new" that will work in an MMO environment, and as it stands with Oblivion on the one hand, and World of Warcraft on the other, it just won't work.
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Bethesda confirmed at a recent press event that Shivering Isles will be one of the first games to make use of the extra 250 achievement points available for downloadable expansion packs.

The Oblivion add-on for 360 will also feature new shader technology that should bring the game up to the graphical standard of the PS3 copy, adding to recent comments from Bethesda spokesperson Pete Hines that the two versions will look virtually identical.
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In an interview with GamesRadar, Bethesda's Pete Hines, vice president for PR and marketing, has revealed that one of the next pieces of downloadable content for The Elder Scrolls IV: Oblivion will be a Fighter's Stronghold. This would follow in the same style as the previously released Thieves Den and Vile Lair plugins, but offering you a more noble pad to kick your heels ... » Read More

An article over at Joystiq.com suggest so

-- "When we learned that the PS3 version of The Elder Scrolls IV: Oblivion would not feature the majority of downloadable content found on the Xbox 360 and PC versions of the game, it was a blow to fans of horse armor everywhere. This weeks episode of The 1UP Show (02/02) provides the follow-up hook as Managing Editor Garnett Lee relays a juicy bit of info from Bethesda. As it turns out, it's due to a memory limitation with the Playstation 3 itself."

Read the full article for more details on the PS3, Xbox 360 and rumored Wii versions.
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The Capcom game noticeably absent from the nominee pool at this week's AIAS-sponsored Achievement Awards shares the distinction of being the most-nominated game in the upcoming Game Developers Choice Awards competition.

Okami shares the honor with Bethesda Softworks' The Elder Scrolls IV: Oblivion. Each title is nominated in four categories, including Best Game.
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Thought you were done with Oblivion when you got 1000 gamerpoints? Think again, my friend...
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It's the end of another great year for gamers. Two new systems launched. Two handhelds waged bloody battle. And next gen gaming got a big kick in the pants - thanks to a year of lonely rule by the Xbox 360. PC gaming fought fire with nukes, waging its battle against the console-based onslaught. In short, it ruled. How do we handle this? We're handing out our gleaming Platinum Chalice to those games and systems which gave us the business. No boring list of 37 different strategy games, divided ... » Read More

The new Knights of the Nine questline featured in the PS3 version of The Elder Scrolls IV: Oblivion will be made available for the PC and Xbox 360 versions also, the game's producer has revealed. "We always aim to have all our content available across all platforms," producer Todd Howard told gaming site IGN when asked if the PS3 content would remain exclusive, "so [making it available for PC and 360] is our ... » Read More

Make the most of your vampirism by taking over the notorious Vile Lair, once home to Greywyn Blenwyth - the infamous vampire leader of the Crimson Scars. The doors to the Vile Lair will open Thursday, adding-on a new homestead to the role-playing marathon, Elder Scrolls IV: Oblivion. Your new refuge will be a multilevel underwater sanctuary, where you can satisfy your thirst for blood in its "cattle pen", or cure your dark gift at the Shrine of Sithis. Alchemists and assassins will delight at ... » Read More