GPU only running at 50%
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Solved by -rascal-,
ARMA 3 is very poorly optimized; you will be a more powerful CPU to get any better performance.
When you turn the graphics settings down, the GPU has to work less, hence the GPU usage dropping down to only ~50%.
At that point, the game becomes much more CPU dependent.
Essentially, you need to balance graphics settings with CPU and GPU usage.
I'd recommend that you try Medium graphics setting as the starting point, and lower / increase the different individual settings until you get something suitable for you.

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