Terraria Xbox One Update Broke the Multiplayer
The latest update for Terraria caused the multiplayer on the Xbox One version of the game to have "serious issues." This issue was confirmed by publisher 505 Games in a recent tweet:
— 505 Games (@505_Games) July 7, 2016
By the looks of it, playing the multiplayer at all could cause the game to entirely break; 505 Games advise that all players stay clear of the multiplayer until they release a fix, but the singleplayer and local multiplayer are unaffected.
While we do not know the cause of the issue, it's likely to be something involved in the multiplayer code.
Terraria released 4 years ago in 2011 for Windows, but has since made its way to all major consoles (including 3DS and Wii U), OS X, Linux, as well as all mobile devices -- releasing on Xbox One and PS4 towards the end of 2014.
The last major update Terraria received was version 1.3 this time last year.