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i5 2500K vs i7 2600K, does cache size matter?

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Look at the gaming benchmarks; the 2600k doesn't seem worth it. Once you overclock, I don't think you'd ever notice a difference.
 
Think what you like but until i see the 2600k getting 20-30fps better I don't believe the extra cache makes 1 jot of difference in gaming. the I7 has 33% more cache compared to the I5. Where are the increased framerates to show that and im not talking 1-5fps

Wow, doesn't take much to get you to back off from an incorrect position. How about finding proof to back up your position?
 
Over at THG they have CPU charts where they compared all the recent CPU architectures at 3.0Ghz on a single thread/single core performance. The extra cache on the i7 vs i5 makes maybe 1-2% difference at best the vast majority of the time. There are outliners like winrar that see 5% gain in speed, but that is the exception to the general trend which is a very small performance advantage.

So no, L3 cache size (6MB vs 8MB) is virtually irrelevant as far as performance goes. Hyperthreading (and the ability to process 8 threads instead of 4 at once) is the main difference in favor of the i7 over the i5 as far as performance goes. It will help in most video/audeo encoding situations.

In gaming, unless the game takes advantage of more than 4 cores/threads, you're unlikely to see much of any difference in performance between the i7/i5, and that is what the benchmarks generally show because few games really take advantage of > 4 cores.

Of the few exceptions, BF3 is one of them. In this test of BF3-multiplayer at the CPU limited setting of (medium 1920x1080), the i7-2600K was significantly (17%) faster than the i5-2500K. Even perhaps more important, the minimum framerate advantage for the i7 was 44% over the i5.
 
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