I've had this game for a few months now. I have an Xbox One, and the lag has been absolutely terrible. My main problem has been random teleportation. I, mistakenly, have blamed the game for the past few weeks. However, it was the internet connection. Modern multiplayer games, and especially games that have such a great quality, require a great internet connection. If you are experiencing lag on any Sea of Thieves platform, it is most likely because of your internet connection.
My solution: Ethernet
After directly hooking up my Xbox to the modem using a network cable (Cat6), every bit of lag has disappeared. My Wi-Fi is fine, but like I said before, multi-player games require a fast and reliable Wi-Fi. Ethernet (which is pretty much a Wi-Fi cable), gives a very fast, reliable, and consistent speed for internet connection. Ethernet cables are very cheap. I got a 50 ft long cable for $12. If this does not solve your lag problem, contact your internet provider as it may be something wrong with your modem.
Ethernet should also solve every lag problem you have on every multiplayer game (assuming if the game is not at fault.)
