MoSCoW prioritization solves one problem: forcing explicit decisions about what ships vs. what waits. The method divides requirements into four categories (Must Have, Should Have, Could Have, Won't Have) with one rule: if everything is a Must Have, the method has failed. MoSCoW's value is in forcing the conversation, not recording the outcome.
"MoSCoW works if you're disciplined about Must Have. If your Must Have list contains more than 60% of requirements, you haven't prioritized, you've renamed a full backlog. The whole point is that Must Have should be painful to define."
— Emma L., Senior PM at an enterprise software company
The four MoSCoW categories defined
Must Have (M): Requirements that are non-negotiable for the release. Without these, the product fails completely or violates a hard constraint (legal, safety, contractual). Must Haves should represent 50 to 60% of requirements maximum. If Must Have exceeds 60%, the scope is unrealistic.