Read up on graphics card settings, namely alpha channel anti-alaising. PS3 isn't as powerful as top-flight graphics cards, and even those significantly sacrifice frame rate to render smooth shadows. There's some better systems now, but they weren't around when Skyrim (or PS3 or Xbox) was made, and are only available on the newest cards.
um, oblivion had better shadows than this game. Talkin about PC version of both too. PC also has blocky ass shadows. This is not a hardware flaw, its a game engine/settings flaw. I have the game maxed everything ultra 16x AF 8xAA ambient occlusion high quality via nvidia beta drivers ect. Hopefully a later patch will fix the shadows.
Let me be clear, compared to almost anything else, the creation engine is a piece of [censored]. Thank you.