Okay to finish this argument in a mature way.
Self shadowing is any rendering technique that allows for non-static objects to cast shadows on themselves, each other and on the environment. In simple terms: It means that objects that are moving (characters, cars, whatever) (not necessarily all objects) casts shadows onto themselves and on to the environment (ground\walls whatever).
It does not mean that absolutely all objects in the game has to cast shadows, it can be used to some extent or another (like all npcs, but grass or the closest 10 npcs, or whatever). The "self-shadowing" effect can be achieved in several ways, the most common way being dept shadow mapping and stencil shadows.
Console owners have enjoyed games with selfshadowing even on the Ps2, with NBA 2005 and God of War 2, and on the xbox 1 as early as in 2002 with X-Games Snowboarding 2002. PC gamers have enjoyed this for probably even longer, but i cannot be arsed to google it, any big new PC shooter has self shadowing by now (Stalker, Crysis, FEAR, Rise and Fall Civilization at war (RTS) , +++). On the X360 the list of games with self shadowing is long, some of them being CoD3,CoD4,GTA4,Halo 3, Splinter Cell
ouble Agent, Mass Effect, (even the original splinter cell had self shadowing for the main guy), Fifa 08, Quake 4, GRID, DIRT, Gears of War, all UE3 titles that i have played ) i could go on but i think ive made my point.
If you still disagree, then what about this:
Console developers has made games with self shadowing, on the original Xbox back in 2002, and on the Playstation 2 in 2005. I think its pretty self explainatory that today, with the x360 and the PS3 being ATLEAST 5x more powerful in any aspect, that producing selfshadowing is not exactly a hard feat.
Self-shadowing, no matter how badly or cheaply or easly its done, no matter if its stencil shadows or shadow maps (just achieving something you could call self-shadowing) is not particularly hard to do (it may be expensive for performance, but if one of your goals is self-shadowing on all NPCs for example, its a feat thats easy to achieve with todays consoles (ofc, it may mean you have to cut back on something else, thats besides the point)and is pretty common in games today.
I dont have to time to gooling up all kinds of gameplay clips to prove this point any further, im sure if your still interested you can google up the titles i mentioned and check for yourself.