Xbox Party Chat not working – here’s what’s going on
It's not been a good weekend down the server farm

There will have been people in rooms at Microsoft’s server HQs hoping and expecting a nice quiet weekend. This went down the river sideways when Sea of Thieves borked out in the middle of its big 24-hour event yesterday. We also had minor reports of a variety of other services with issues, and now it’s apparent issues are still rife with some services, with many players reporting that their Xbox Party Chat isn’t working.
A quick check of the Xbox Status page does indeed show problems with party chat, and then more specifically party chat within Sea of Thieves.
Why is Xbox Party Chat not working?
Microsoft is aware of the issue and has tweeted that playing Sea of Thieves should now be possible, just not speaking to the rest of your queue. Yay, finally solo SoT players get the win! There doesn’t seem to be a timeline yet as to when we can expect services to return to normal, but they have been down a good while now, so hopefully a resolution is close.

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