Skill
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Skill is awarded to players of Halo 3’s Matchmaking, along with experience points. This can only be obtained on ranked playlists, such as Lone Wolves or Team Slayer.
Gaining Skill
Skill does not have a set process to gain it, but is your skill relative relative to other players currently playing Halo 3. You do not gain skill unless you become appreciably and significantly better. If you develop a greater headshot ability, your skill level should rise commensurately, unlike with EXP, that only changes if you win a match. [1]
