have sat down for an interview with Bethesda's Mark Nelson about the new Oblivion expansion, Shivering Isles. There's a bit of info in there (more hints) about the expansion, although not so good news for Xbox 360 owners:
"Right now, a retail expansion isn’t an option on the 360. We’ve talked to Microsoft about it, and continue to do so, but our ability to do that isn’t up to us at this point. Certainly it’s an option we’d like to have, as you tend to sell more games when you make it available in as many places as possible."
Though you can still get it via Xbox Live. And also, on the pay mods for Oblivion:
"We're considering a couple more right now, but past that, we have no definite plans."
So it sounds like they may finally be giving up on the idea... again not so good for the Xbox 360 players though.