500$ Server Build
I'd only be running 1-2 game servers at a time. Namely a Minecraft server 24/7, and the occasional Gmod/TF2 server if my friends wanted to play. Would I still need a Xeon then?
Nope. If you're only running 1-2 games, then that's only 2 threads (plus the OS and background apps) so an i3 (2 cores with hyper threading) becomes perfectly sufficient. Keep in mind though that this limits you to NOT running more servers simultaneously. The G3258 would be a great option if it weren't for the OS and background apps (2 REALLY strong threads). Anyway, dropping down gives you this:
PCPartPicker part list / Price breakdown by merchant
CPU: Intel Core i3-4150 3.5GHz Dual-Core Processor ($104.99 @ SuperBiiz)
Motherboard: ASRock H97M Anniversary Micro ATX LGA1150 Motherboard ($66.99 @ SuperBiiz)
Memory: G.Skill Ripjaws X Series 8GB (2 x 4GB) DDR3-1600 Memory ($63.99 @ Newegg)
Storage: Sandisk X110 128GB 2.5" Solid State Drive ($59.99 @ NCIX US)
Case: Fractal Design FD-CA-CORE-3300-BL ATX Mid Tower Case ($34.99 @ NCIX US)
Power Supply: EVGA 500W 80+ Bronze Certified ATX Power Supply ($34.99 @ Newegg)
Total: $365.94
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2015-01-20 13:37 EST-0500
and you don't need the 16GB Ram either, so I threw in an SSD. You still need powerful single-threaded performance, but you don't need multi-threaded performance, so AMD is a really bad route to go.

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