I threw together a quick tutorial on using capsule shadows inside of Unreal Engine 4. Let me know if there are other lighting things you would like to know more about. Cheers! Link: https://youtu.be/5pcH7HC7rhE
Yeah I totally agree about the quality lost with the total loss of the shadow map when enabling the capsule shadows. I almost wished it could lerp to the capsule shadows only when entering a shadowed area.
Watched it, it looks like ticking the capsule shadows on completely replaces the mesh's shadows with the capsules' ones. Which look kinda bad, if you ask me. Also, while running you can clearly see feet's box capsules casting squarish shadows. The lightsource's angle is a neat trick for certain effects, though, like when…