Consider the following scenario with 3 players, A, B, C. All have not played a game before.
1. Players A and B play 5 games, A wins 4, B wins 1
then
2. Players B and C play 5 games, B wins 4, C wins 1
In step 1, A's rating goes up, and B's goes down.
In step 2, B's rating goes up, and C's goes down.
The question is should A's rating go up in step 2?
Following step 2, we know that B is a better player than we initially thought after step 1. But A beat B in step 1, so we know that A is better than we thought after step 1, too. So we expect more accurate predictions if we increase A's rating a bit following step 2.
On the other hand, if we do this, you change players' ratings, even when they don't play games. Most rating systems seek to avoid this.