I havent gamed on it yet but it is pretty responsive. My specs are nvidia geforce rtx3060 and amd ryzen 7. Also i am using KVM as the hypervisor since it is type 1 which means better performance and safety overall.
In regards to the VM, you can alucate as much ram and cpu power to it to make it performe better if needed (when setting up and you can also adjust it afterwards, at least in virtmanager (KVM) ). And there is an aspect I haven't really touched but heard that it improved performance which is gpu passthrough.
(I dont really limit processes and stuff, just simple alucation and configuration)