Is hyperthreading necessary?

Right now I'm torn between the i3 and Xeon version of the Lenovo Thinkserver TS140. I3 has hyperthreading, xeon doesn't. I'm not actually going to be using this as a server, it will be a desktop. Both versions are basically the same price so that isn't a factor.

So, lets amp up the comparison a bit, just to make sure its accurate.

There are two processors. One is an i7 and the other a Xeon E3. Both clock at 3.9Ghz and have an 8MB cache. The difference is that the Xeon is a quad core with no hyperthreading, and the i7 is a dual core with 4 logical cores. Also, the Xeon has slightly better integrated graphics.

Everything else (RAM, PSU, HDD size, etc) is equal.

PS I know this thing has no hard drive, I have my own hard drive.

Added (1). Which is better, our hypothetical i7 or Xeon?

First, GHz isn't a measurement of speed. Don't use it to compare processors unless they are the same series of processor, even then it doesn't tell you much.

What you need to do is look up benchmarks, which are measurements of speed for a processor. I like to use the CPU Boss website to do that.

Just type into Google something like this: "cpuboss Intel Xeon E3-1220 vs Core i3 4130"
http://cpuboss.com/cpus/Intel-Xeon-E3-1220-vs-Intel-Core-i3-4130

You didn't post exactly what processors you are comparing so I just made a guess.

Then you'll want to mostly compare the main speed benchmark and the single core benchmark. Multi-core processing isn't very efficient, and many programs can't even use more than one core. So the single core benchmark is important to consider because a processor with two fast cores will often outperform a processor with four slow cores.

In the example, the Xeon only gains.2 higher because it has four cores instead of two. The individual cores are the same speed.

Finally, I don't think Hyperthreading is that big of a deal. It might make multi-tasking a little more efficient but if you're looking to do something like play games what you need is a processor that can run one program faster.

If you are looking for a small increase in speed, HT may do the job, but if, as Jamin said, looking to play games, I would advise you to change your processor altogether to a more modern one (smt like an i7 or i5) and possibly upgrade your graphics card (if you haven't already done so!).

Finally, I think that if you are looking to play graphics intensive games, you should build your own gaming machine. A good website that filters out parts is pcpartpicker.com. I use it a lot!

Hope it helps!

PS i7 is way better. Xeon processors are only for servers and huge workstations, which I would doubt you would need! Also, Xeons can go up to 2500$ on average.