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Re:Ask HN: The ranking algorithm in 'the social network' by brendano on Saturday December 18, 2010 @12:36PM (#2019801)
MSR developed a (Bayesian) enhancement to Elo that apparently is used by XBox Live: http://research.microsoft.com/en-us/projects/trueskill/
Re:Ask HN: The ranking algorithm in 'the social network' by iampims on Saturday December 18, 2010 @02:58PM (#2020138)
The most comprehensive article on the subject, as far as I know: http://www.moserware.com/2010/03/computing-your-skill.html