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Pearl Abyss just dropped Crimson Desert update 1.04.00 (labeled 1.000.232 on PS5 and Xbox). The patch is live now on Steam PC, PlayStation, Xbox, and Epic Games Store. Mac users on Steam and the Mac App Store are still waiting.
This is the largest update since launch. We're talking difficulty sliders, housing storage that actually works, new pets, controller presets, and a fix list that goes on for days.
The update is 29.7GB on PS5, 40GB on PC, and 44GB on Xbox Series X. Reddit user u/yourfavchoom called it "the largest update yet for the game."
Open Settings > Play. Pick Easy, Normal, or Hard. Normal is the original experience you've been playing.
Easy mode:
Hard mode:
Boss rematches are coming soon. No date yet, but Pearl Abyss says you'll be able to fight any boss you've already beaten.
"so happy with the difficulty slider, bosses have become a slog for me."
- Reddit u/EvilMuffin93
Your house just got way more useful. All these storage items connect directly to crafting and cooking.
New storage items:
Materials in the Sturdy Gatherables Chest count for crafting even if you don't carry them. Same for ingredients in the coolers during cooking.
Other housing improvements:

Birds are now tameable. Find them around Pywel. Use the Sotdae of Bond (quest item) to gain Trust by feeding them.
Five new cat types added. The Abyss Heuklang can become a proper pet now. You can rename horses and pets.
Remember the bug where cats would sit on your shoulder forever? Pearl Abyss fixed it, but players loved it, so they added a workaround: the Sigil of Bonding accessory slot (equip on a cat) lets them stay longer.
Pet equipment is sold at a new secret shop in Pororin.
Controller and keyboard/mouse presets are in. The Classic Preset keeps original controls. More detailed controller customization is coming soon.
Key changes:
"Touchpad opening map is prime."
- Reddit u/Merk008
"Reversing the dodge input was really all I needed. Just great."
- Reddit u/Doancer1

This is the big one. Bosses are no longer immune to player attacks while performing powerful attacks. That changes everything.
Other combat adjustments:
Character-specific fixes:
Distant objects and textures look better, especially on higher graphics settings. Hair lighting in shaded areas improved.
Accessibility options added:
PC specific:
Mac specific:
Steam fix: Xbox controller right stick actions (Nature's Snare, fishing) now work properly when Steam Input is enabled.
Inventory now has category tabs: All, Documents, Equipment, Food, Materials, and Others. Sort settings save per category and persist after restart.
Map improvements:
Shop UI: Shows how many of an item you already own. Deactivated items show purchase conditions.
Pearl Abyss fixed multiple crash issues across PC, console, and Mac. The Load menu now shows a warning if save data is corrupted. HDR crash on non-HDR monitors is fixed.
Notable bug fixes:
Check the official Known Issues notice for ongoing problems.
From the official patch page:
This is the patch that turns Crimson Desert from a promising but rough launch into something you can recommend without caveats. Difficulty modes fix the boss complaints. Storage overhaul respects your time. And Pearl Abyss is moving faster than almost any other studio this size.
Hard mode players are going to get wrecked by those new boss patterns. Easy mode players finally get to see the story without banging their heads against a wall for three hours.
Is the game finished? No. The Mac version is still behind, and boss rematches aren't here yet. But this is the kind of update that changes the conversation.
Read the official patch notes or jump back in and see for yourself.