What is EOMM, Engagement Optimized Matchmaking?

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Unlike SBMM, EOMM emphasizes engagement rather than skill. How does this match-making algorithm work?
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Competitive multiplayer games often employ skill-based matchmaking (SBMM) algorithms in order to match players of similar aptitude in the same lobbies. This method of arrangement has a controversial counterpart, “engagement optimized” matchmaking. This kind of matchmaking prioritizes player retention and in-game purchases. SBMM is a more transparent form of EOMM, aiming to keep up engagement by challenging players without exhausting them. For some content creators, this also means no “pub-stomping” (when an experienced and well-organized team obliterates the less experienced and less organized members of a lobby)