geofelt :
Some games are cpu limited, but fast action games tend to be graphics limited.
Your FX-8350 is a weak processor.
Before you commit to anything, I suggest you try a few tests:
a) Run YOUR games, but lower your resolution and eye candy.
If your FPS increases, it indicates that your cpu is strong enough to drive a better graphics configuration.
If your FPS stays the same, you are likely more cpu limited.
b) Limit your cpu, either by reducing the OC, or, in windows power management, limit the maximum cpu% to something like 70%.
Go to control panel/power options/change plan settings/change advanced power settings/processor power management/maximum processor state/
This will simulate what a lack of cpu power will do.
Conversely what a 30% improvement in core speed might do.
You should also experiment with removing one or more cores/threads. You can do this in the windows msconfig boot advanced options option.
You will need to reboot for the change to take effect. Set the number of threads to less than you have.
This will tell you how sensitive your games are to the benefits of many threads.
If you see little difference, your game does not need all the threads you have.
It is possible that both tests are positive, indicating that you have a well balanced system,
and both cpu and gpu need to be upgraded to get better gaming FPS.
don't think that CPU is a limiting factor here, my friend paired his 1070 with a FX-8320, and he can still get decent performance out of it
a FX-8350 shouldn't bottleneck the 1060
but to be sure, try checking the performance, u can use MSI afterburner + Rivaturner for that and use the OSD feature
see your hardware performance during gaming, it should tell us which part is having a problem...
@OP
PUBG is still not optimized so i won't be surprised if dips like that happen
perhaps u should try capping the game's fps so that dips like that won't cause some sort of lag