My cpu budget is around 200 and I was considering the i5 4670k or the xeon 1230 v3, I can get both for around the same price. Which would be the better choice for a more future proof gaming rig.
From what I understand the xeon is the same as the 4770 but no igpu and 100mhz lower clock speed.
Should I get 4 overclocking threads or 8 threads that are slightly slower?
They would probably have the same life span. As games grow more demanding, the Xeon will have the thread count on it's side, the i5 will have the high clock speed, so i guess it evens out. The Xeon will not be a bottleneck, so if you are not interested in overclocking, i suggest you go with it. (that's how i made up my mind in getting one). Check the video on Linus's chanel on the new unlocked Pentium. 4.6 Ghz Pentium matches a stock i3, so there's hyperthreading for you.
If you want to do productivity tasks, in addition to gaming, the Xeon is the obvious choice. The extra threads will help in those tasks, but not so much in gaming. It comes down to how those different applications are coded.
All things considered, if you're using a dedicated GPU, the Xeon is the better value chip.
what is your current rig? can you wait until broadwell? i am on sandy bridge i5 2500k and will wait until broadwell or haswell-e if I can get the budget.
It looks like HTT (SMT) is just a 15-25% Boost in Performance and you can easily OC a i5 to 4.2-4.4Ghz.
If you run a game that uses up to or under 4 cores the i5 will perform better plus you got a igpu . . . that means if your Graka dies you can still use your PC till you got a new one.
If you want a 8 "core" Intel i would go with the i7 4770K/4790K even if it costs more . . . as i said if your GPU dies you don't have to wait will you got a new one and you can OC them easily.