Use windows sonic surround virtualization
Modulates the two stereo channels to sound good in your headphones. IF your game already has headphone optimized stereo sound, turn off System spatial sound, unless the game has multi-channel surround sound and you can use the Windows Sonic software to convert that to two channel headphone optimized sound. Every game will be different.
I recommend Mayflower Arc V2 or Schitt Hel/Fulla for your amplification and mic in
Honestly you should be fine off your motherboard though for the AD700x. Don't need much to drive them.
Just apply Windows Sonic or one of the other sound virtualization things you can buy.
No, no, no, no.
This is bad for competitive gaming.
For competitive gaming you need:
1. A game that produces readily HRTF 3D virtualized stereo sound output to your stereo headphones (and No Pseudo-virtualization like Windows Sonic, Dolby Atmos or anything else in between, they will only distort/mask the positional accuracy). Example: Overwatch with Dolby Atmos built-in
OR
2. A game that gives out multichannel (5.1/7.1/more in the future) discrete sound streams to the Windows Systems Audio Device (that can be a real multi-channel sound card OR a virtual multi-channel device, in either case, it takes in the discrete multi-channel information, which enables...)
3. A proper virtualization algorithm that takes in the multi-channel sound input and virtualizes it using any of the known methods into generic OR personalized stereo 3D HRTF -enabled virtualized soundspace. Examples of these are: Creative CMSS-3D (old), Creative SBX (latest non-personalized in Creative soundcards and motherboard drivers), Creative SXFI (latest personalizable, available in SXFI amp and X3 USB sound card), Dolby Atmos (virtual driver in Windows), Windows Sonic (from Microsoft, virtual driver in Windows), Wavex NX (for example Audeze uses this in Mobius) or the multitude of other better/worse algorithms in zillion of other brands. Or you can forego all that and download HeSuVi as a system audio device and try different reverse-engineered generic algorithms through it, without changing your physical sound card device and/or virtual audio drivers. BTW, HeSuVi is free, but takes a bit time to first learn.
4. Ability to TUNE THAT algorithm (usually at least amount of echo/reverb, in case of Creative SXFI, tune it roughly to the shape of your ear pinnae) to your heaphones, your ears and your tastes.
5. Low latency. Many people just don't get this. Sound is often the pre-cue for visual seeking. That is, you first hear a sound coming from direction X and then you orient yourself visually to that direction. The faster you hear this cue (less latency), the faster you can turn around and visually see where the sound is coming from. The difference between best and worst audio latency in virtualized 3D audio gaming devices is 100+ milliseconds. That is insane! People are bickering about total display delay of monitors of <10ms and they completely ignore audio delay that can be 10 times as large as that. This should be something that anybody who competitively games, must take into account, if you want to have the best time to react and be at the top of your game.
6. Lots of practice, practice, practice with that particular setup outlined above, in your system, with your headphones, so that you learn the benefits/failings of the algorithm you use to virtualize the sound to headphones, and learn to properly recognize the direction (and distance) of the sounds you hear through it.
What is the best?
There is much debate about this and NOBODY has tested ALL of them, and nobody can say that what works for their ears/hearing/headpones the best, is the best FOR YOU.
With that said, here is my personal short-list to try:
BASELINE: PCI-E based Soundcard from say Creative, using SBX Pro. You can tune the amount of SBX effect to your liking and play with the front/back speak placement (i.e. strength of multichannel signal) volumes. This is fairly low latency and fairly good positional accuracy and you can tune it a bit.
LOW LATENCY: A fast USB-based (not 3.5mm audio plug based) Headphone with a built-in 7.1 headphone virtualization. Example: ROG Strix Fusion 500 (don't buy the wireless 700 version, you just get extra audio delay). Benefits: what you lose in customizability, and what you lose in accuracy of pinpointing the direction of 3D sounds, you gain in extra -18ms of latency reduced from your sound stream. The sounds in game reach your ears roughly a frame faster than with other players (60Hz update speed). This offers the lowest latency, not the best positional 3D algo, and very little tuning.
PERSONALIZED: Creative SoundBlaster X3 : a personalizable HRTF 3D audio algo tuned to the images of your ears. Many say the best in terms of audio positioning. Can be headphone specific (i..e. your personal HRTF 3D algo might work well with headphone model X, but not so good with headphone model Y). What you lose is speed. You get an additional +55ms of latency (that's 3.5 frames at 60hz) on top of the PCI-E based card, even more for the fast USB-based headphones. This is the best for 3D sound directional accuracy, the worst for latency and tuning options are very limited.
TINKER/LOW LATENCY/MANY OPTIONS): HeSuVi free software the emulates (even if it cannot fully replicated) the 3D virtualization algorithms of Dolby Atmos, CMSS-3D, Dolby Headphone, Sennheiser GSX, Razer Surround, Waves NX, etc, etc etc. It is the ALGO part of your headphone stack and it is very low latency (extra delay perhaps + 1-2 ms). What you need on top of this is a fast "straight wire" stereo-sound card, with low-latency, no virtualization, no 3D algorithms, no gimmicks, just fast output and enough to drive your headphones.
Use a good USB DAC/headphone amp for this in your own own budget range OR alternatively just use your motherboards built-in audio (if it's enough to drive your headphones loud/distortion-free enough) with NO additional fancy drivers in-between there. HeSuVi with Equalizer APO takes a bit of tinkering to get started, but there are youtube tutorials for that. The best feature? 100% free. Also, you get to try almost ALL of the major 3D virtualization algorithms (for free) and find out which one works the best FOR YOU (you know, it does change from person to person). The only thing you don't get to do is, to try out your own personalized HRTF algorithm (unless you have an artificial 3D recording head, anechoic chamber, ear canal microphones and a 7.1 surround speaker setup, with which of course you could also tune your own 3D HRTF personalize algorithm into HeSuVi).
With that said, start with HeSuVi, if you have time and patience. If you just want something fast, get proper 7.1 USB-headphones. If you want the best in personalized 3D audio accuracy try out the Creative X3 (and understand you will get extra latency in the audio).