Motherboard for Sandybridge Core i3-2120

I want to buy a new computer for playing video game. I am trying to build up a hardware that can play all type of games at a decent level. After talking with few people I am able to find that some of my friends have suggested me to go with Intel core i3-2120 SandyBridge processor. Here I am doubtful about the board compatibility. So anyhow I will have to buy a new one for this processor. I had checked the cpu specs that says it has a complete new type of socket. So this is not going to fit on the existing Core 2 Duo processor.

That is right. New cpu means you will have to anyhow go for a new motherboard. And for Sandybridge you can try checking out MSI P67A-GD65. Soon we will be getting a first CPUs to be available under Intel's new Sandy Bridge series. This new processor is going to have 1155 socket and on that basis you will have to locate the board. I will advice you to check once the board that I had mentioned. Or else if you think this one is costly then Gigabyte has quiet nice series under socket 1155. You can buy a budget board form there.

Would like to suggest you to buy Asus P8P67 motherboard and perfectly compatible with sandy bridge processor. It also provide you also 7.1 high-definition audio channel for great multimedia experience. Always checks the specification in detail before going for a board. Buy something that can provide you a longer experience. There is another board called as ASRock P67 Extreme6. This one is more high end and comes loaded with more great features.

The second gen. i series cpus use the 1155 socket.
The i3 2120 will play any type of videos but it wont support all games(if you intend to do it with the on-board graphics).You haven't specified your budget either.

If you can afford two graphics cards,then go for a P67 motherboard otherwise it's better to stick with the H67 since you wont be able to overclock this SB i3.And H67s are cheaper and can use the on die IGP too.
There's nothing that is more compatible or less compatible.The difference is that costly motherboards offer more modern features.

Some of the above recommended motherboards are very costly.

If you have that kinda budget then think about a better modern DX11 graphics card which will be much more value for money and will improve the gaming performance significantly.