Some points:
1) run a stress test using a multi-core compatible program (there's a multi-core Prime 95 version out there). Modern CPU's will crash before they die of overheating. If your CPU can be stressed without crashing there's no problem.
*How hot your CPU is depends also on how good your Heatsink+Fan is. A good HSF can drop the temperature by 20degrees over a stock fan. I STRONGLY advise you replace a stock HSF if possible just to reduce noise.
2) Observe that your CPU fan varies in speed. If it does not, check the following:
a) CPU fan is connected to the motherboard CPU fan connector
b) BIOS setting is correct. Usually a choice of Auto, Voltage or PWM. My stock fan required Auto or PWM but my non-stock HSF required Voltage.
***Your temperature sounds pretty normal now. You need only to decide if you want a non-stock HSF (if you don't already) and check that your fan speed changes.
If you use a CPU stress program you should hear your fan speed increase drastically within a few seconds of starting it. If you hear no change your CPU fan is likely at 100% already and you definitely don't want that much noise.
OTHER:
A typical gaming setup should have a cooling solution like this:
1) 2 or 3 120mm case fans (500-800RPM. CONSTANT SPEED ONLY. Probably use the 4-pin Molex for power. Use front-bottom of case for #1, #2 should be top-rear or top-top and inline with the CPU fan and #3 is OPTIONAL and is either top-top or top-rear, whichever was not used by #2 fan)
2) graphics card (automatic)
3) PSU (automatic). I prefer bottom of case such as Antec. If at the top, note that most people show the PSU with the intake fan INSIDE the case. DO. NOT. DO. THIS!! It sucks in hot air into the PSU forcing its fan to spin more and reduces the stability of the PSU. Make sure neither fan is directly inside the case.
4) CPU HSF. A non-stock HSF with large heatsink and 120mm fan is usually ideal. The more expensive ones tend to be too large and heavy (basically overkill). $30 to $50 is usually a good range. Also, check out NCIX even if you can't buy from them. It's got a good collection and comments.
Always measure the HSF to your case. Some motherboards have heatsinks, RAM, or a top PCIe slot which would interfere with a large HSF.
I prefer a HSF which has a 120mm fan that faces to the REAR of the case as it tends to force air over the RAM more than if it faced straight up.