OP said he had a budget of $500, I suggested an Amp and cans for $500. A little Dot and a Set of Denon ADH2000 would be my choice for $500. I just offered my 2 pennies. Even for GAMING a set of music orientated headphone will out perform a set of branded PC headphones even at $80, off the top of my head there are loads of sealed, open, in ear and over ear headphones that will out perform a gaming headset. A DAC will help audio quality obviously, but you are going to have too many wires and you obviously don't like, but audio in games is getting better and better, have you played BF3 or Skyrim recently? that It annoys me when people suggest crap headphones, they say, 'they are fine for gaming,' well for you they may be, but you obviously couldn't give a monkeys left testicle about good quality audio. Its the same thing with Beats, Fanny Wang, all the celeb endorsed cans that are utterly crap, in the same vein of gaming gear, keyboards and mice etc are all the same, flashy, trashy, cheap and cater for the masses. Looks and feel are what they go for quality and price come second, again case in point Razer, Logitech, Corsair etc. I know people won't like me saying that but its the truth. OP obviously hasn't responded, so who knows if he actually has $500 to spend, but I've given my opinion, buy cheap if you wan't crap and have to buy again next year, or spend some more, get good quality from the beginning and have it last for years and perform for years.