Some Xeon E3 and E5 processors are good for gaming, but not the one you picked because the clock speed is too low. I know it's cheap but there are some better alternatives out there. Most of what I've seen recommended for a cheap Xeon is the E5-2667, which has an all core Turboboost speed of 3.2ghz.
When people say Xeon for gaming, they're thinking of workstation processors with a moderate amount of cores and higher clock speeds like the E5-1650, E5-1660, E5-2687w, E5-2690. There is another Xeon E5-2600 series CPU which was made exclusively for Dell workstations but I can't remember it's name, but this CPU was decent for gaming.
The E5 v2 processors are based off of the Ivy Bridge Architecture and they share the same socket at the Sandy Bridge versions. You will want to avoid the E5 v3 series which uses the LGA 2011-v3 socket that's different compared to the older LGA 2011 socket.
Whichever Xeon E5 you pick, you will be limited to unknown Chinese motherboards like Huanan if you want something affordable. No one really seems to know how long these cheaper Chinese boards will last. The name brand x79 boards have long been discontinued as these were only produced from late 2011-mid 2014. It's very difficult to find a name brand x79 motherboard for anything less than $200.
In North America, often times a used Ryzen 5 1600 and a b350 motherboard is a better alternative.
I would also suggest researching the Spectre, Meltdown, and Zombieload patches. These have been particularly hard on older Intel processors from the Sandy Bridge and Ivy Bridge era.