I was thinking about upgrading my computer around christmas time, i like to game.. a lot. Should i go for one of these two processors? Or wait for the hyped Ivy Bridge? Was also going to upgrade video cards.. but supposedly GTX 600 series might be out also, soon?
Phenom II 965 x4 3.4ghz
8 Gigs 1333mhz
GTX 460 SC 1gb
Between the 2500K and 2600K the 2500K would be better for gaming. The I7 is overkill for gaming because you spend $100 dollars more for hyper threading a feature that games don't even use. The I5 is really one of the best all around processors for gaming. As for wheather to wait or not it's hard to say because no one really knows how good or bad the Ivy Bridges will be until they're released.
From what I've heard, Ivybridge is going to have better integrated graphics than Sandybridge, but the performance isn't going to be hugely different in terms of the CPU. It'll probably be better, but maybe not so much that you would get a hugely better chip for waiting. Sandybridge-E will be the one to go for if you want better performance than Sandybridge.
Your current rig looks good...you could just upgrade the graphics card for now, and wait to see what CPU you want to go for. The 600 series is due next from Nvidia, but the current generation of cards is excellent, too. Or you could SLI your current 460 (if your motherboard supports it?)