An i7 makes use of hyperthreading. Each processor CPU has two instruction sets feeding it, a main task, and a secondary task. If the primary task completes early in the cycle then the processor sends the seccond task through, allowing you to complete two cores worth of work for one core. It does not scale necessarily perfect.
I have an i7 4770k and I found that hyperthreading adds about 50-60% for cpu power benchmarks.
The reason games don't use hyperthreading is because they need take done immediately, and not a clock cycle later when an opening appears.
As for AMD thier processors are the other way around, they share all the resources (commie processors from team red), and when the processor turns on for a clock cycle some cores might be hogging the cache, or instruction sets are to busy feeding one core to help the others (AMD fx series have two cores per instruction set) and they will frequently skip a clock cycle, or sit idle.
These reasons are why a 4 core intel can blow away an 8core AMD for preformance.
But all the preformance comes with a price.
Hope this helps you