I ran into a group of two people, items they had dropped or in their hands were invisible to me but not to each other. Then, as a group we met a third person who then dropped an item and it was visible to all of us. The encounter ended with me getting shot in the face with an invisible handgun however, I've attached a YouTube video depicting exactly what happened to me and probably many other console DayZ players; its infuriating and must be patched immediately if possible.