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I wouldn't do that if you have the hardware to keep things separated but it's because of what I run on my server. You need to take into consideration that besides CPU/GPU usage a server's heavy load will be on Network and Disks, so while the system looks like it's not doing much, it might be doing a lot of Io operations. The thing with that is that both your disks and your network have a limited capacity, so if you're trying to play a game you might get longer load screens and higher ping that you would with one machine for each.
That being said it vastly depends on what you're running on the server, but higher pings and lower fps are a given since now you'll have more processes running on the background, so for games that are CPU bottlenecked it will be a massive hit.