I noticed this too right away the first time I went out hunting. Trying to bring down targets downrange at large distances is impossible. The arrows just pass right through and don't register damage. I've tested this over and over and found the arrows in the ground right where the animal/npc was situated.
This needs fixing asap tbh!
The youtube video is proof positive.
This needs fixing asap tbh!

The youtube video is proof positive.
http://youtu.be/sxmNZDhQEnY
I like how the arrow just disappears into the second target. *facepalm