The CPU sets the hard limits of performance. In some games, those hard limits may be at an FPS that is way beyond what is necessary for a great experience in that game. When this is the case, the performance winds up delegated by the balance between the visual quality settings and the render throughput available on the GPU. In many popular multi-player games, those hard limits of the CPU begin to show up, with weaker CPUs sometimes causing performance to dip to 30FPS or less in some conditions. An i5 haswell will maintain that 50-60+FPS minimum in about 99% of games and 99% of conditions imaginable, which is ideal, as it will usually keep the bottleneck shifted to the GPU or the monitor refresh rate.
So while performance does absolutely originate with the CPU, once you "solve" the CPU performance dilemma by using a great CPU for these workloads, the performance can often then wind up being dictated by the GPU and the balance of visual quality settings.
http://www.techpowerup.com/reviews/EVGA/GTX_970_SC_ACX_Cooler/16.html
The sequel to metro 2033 is benchmarked on many different GPUs at many different resolutions in the link above. You can see that the same GPU can be used to deliver results ranging from <30FPS at 4K, all the way to beyond 100FPS at 1600X900. This is a nice example of the point that visual quality is inversely adjustable with performance. In this case, the overclocked i7 used for the benchmark is not a significant player in effecting this range of performance because it is capable of producing more than 100FPS in the conditions used for this test. In this case, the GPU and visual quality settings selected wind up dictating the results, but somewhere lies a hard limit imposed by that CPU. Could be at 110FPS, or at 200FPS, I really have no clue for that particular game. Point being, once you hit the hard limit set by the CPU, there is no way to adjust the GPU selection or visual quality settings to get any more framerate. In this particular game, the CPU requirements to maintain over 60FPS (a popular goal) are probably relatively low, but in many games this is not the case.
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there'd be very little practical, visible difference between what settings I could run the game at and have smooth FPS between an i5/970 and the 'next steps up' i7/980?
Precisely. Yet that "step up" would cost an additional ~$350 or so? There are value "cliffs" on both ends of the hardware specrum not worth jumping off.
Like buying a 500GB HD for $48 when you can buy a 1TB drive that offers both twice the capacity and better performance for $55. This is an example of the "cliff" on the bottom end of one particular scale. On the top end, we see the same sort of "cliff" where the value of flagship products is typically far lower than the products in a tier just below that flagship. A huge price jump for very little performance improvement.
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Speaking of HDs, yes, in order for games to benefit from an SSD, the game must be installed on the SSD. If your collection has swelled to beyond 500GB, then you're faced with possibly biting the bullet on a $400 1TB SSD.
You might find a happy alternative with something like a WD1000DHTZ, the 10,000 rpm 2.5" drive from western digital improves random access performance over traditional 3.5" consumer drives by about double, which would be a welcome improvement for booting and loading performance at about half the cost of the 1TB SSD. The downside is that these are typically noisy drives.
Another alternative would be to leverage a ~64GB SSD as a cache drive, and a 1TB mechanical drive for storage. This can be set up in the BIOS of just about any modern Intel platform. I believe they call it "smart response" technology. It's a fancy implementation of a fakeraid setup. This could be implemented with a great quality 1TB drive and SSD for ~$150 or less in parts.
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PCPartpicker is unfortunately, not set up for browsing workstation/enterprise grade hardware. You can find this hardware through google shopping pretty well. If you're looking for one shop that carries the CPU/MOBO/RAM, superbiiz carries a lot of this stuff and is very competitive on price.
CPU: E3-1231V3 (alternatively you might opt for the E3-1230V3 or 1240V3 if the motherboard you select doesn't have haswell refresh support out of the box)
http://www.superbiiz.com/detail.php?p=E3-1231V3B
MOBO: SuperMicro X10SAT, X10SAE, ASrock C226 WS or WS+...
http://www.superbiiz.com/detail.php?p=MB-X10SAT
http://www.superbiiz.com/detail.php?name=MB-X10SAE
http://www.superbiiz.com/detail.php?name=MB-C226-WS
http://www.superbiiz.com/detail.php?name=MB-C226WSP
RAM: Samsung 1600-11-11-11 1.35V ECC DDR3 UDIMMs (purchase 2).
http://www.superbiiz.com/detail.php?name=D38GRE160S X 2
CPU: ~$250
MoBO: ~$250
RAM: ~$200
Enterprise grade hardware in your home: Priceless.