The Thargoids have been part of Elite lore from the beginning, and with the launch of Elite Dangerous, no one had ever actually seen the alien race. Most of the information that the species was in the game had been hinted at by Frontier Developments chief David Braben and pieced together by players through ruins or derelict ships.

As it turns out, they are indeed real, with Xbox One player DP Sayre recording the first contact.

The encounter with the insectoid race was peaceful, but the player's ship was without power at the time after a hyperspace jump and my not have proved a threat. After the initial encounter, the Thargoid scanned the player's ship then jumped out of the system shortly thereafter.  

The official Elite Dangerous Twitter account confirmed the close encounter, with other players coming in later with similar encounters and sightings. Speculation is running rampant in the community on what the Thargoids may be up to, as the race was not known for pacifism in the original games. Some are guessing scout ships and debating intent, but the revelation that the race is actually in the game has increased the level of comm chatter exponentially.  

Check out the full video. The sound and music really add a lot to the encounter. The fun begins around the 8:20 mark