Overwatch 2 Competitive Overhaul

Another update from Blizzard on Overwatch 2 has further details on competitive play in the first-person shooter sequel. SR is being replaced by Skill Tier Divisions. Here's the explanation of why:
SR is being replaced by Skill Tier Divisions in Overwatch 2. We made the decision to remove SR as a numeric value to relieve the sense of being stuck at a certain rank. Seeing your SR go up and down after each match almost felt like taking a test with the teacher passing or failing you based on each individual question rather than your complete work. It was a lot of pressure, and it doesn’t give players an accurate representation of how they’re performing overall in Competitive.

Tiers still exist in Competitive—Bronze through Grand Master. Each tier will have five divisions ranking from 5 (lowest) to 1 (highest). As you progress through each tier, your division will count down until you rank up to the next tier. Top 500 will not have tier divisions.

Tier Divisions represent the same skill levels as SR, but they give players a higher-level view of where they’re placed in Competitive. Each division represents approximately a 100 SR range. Players will receive a competitive update every seven wins, or 20 losses, instead of every single game.