is this computer compatible with sims 3 and 4 as well as minecraft?

Both of those should be more than capable.

Sims 3 & 4 required either a P4 or C2D, 1-2GB RAM and a 128MB GPU.
Minecraft isn't particularly taxing either, and the onboard GPU of a modern CPU should be more than capable.

You've linked an i7 and a Pentium N3540.

For your needs (and +common workloads, browsing etc), I'd suggest somewhere in the middle - either an i3, i5 or even an AMD A10.

KabyLake i3 (although I'd prefer 8GB RAM)
https://www.amazon.com/Acer-E5-575-33BM-15-6-Inch-Processor-Generation/dp/B01K1IO3QW/ref=sr_1_1?s=pc&ie=UTF8&qid=1495576045&sr=1-1&refinements=p_n_operating_system_browse-bin%3A12035945011

Skylake i5
https://www.amazon.com/Dell-15-6-Inch-Touchscreen-RealSense-Bluetooth/dp/B01D27ERMO/ref=sr_1_3?s=pc&ie=UTF8&qid=1495576130&sr=1-3&refinements=p_n_operating_system_browse-bin%3A12035945011%2Cp_n_feature_four_browse-bin%3A2289793011

A10
https://www.amazon.com/Lenovo-15-6-Inch-Laptop-Windows-80EC00GKUS/dp/B011HNT0MC/ref=sr_1_3?s=pc&ie=UTF8&qid=1495576093&sr=1-3&refinements=p_n_operating_system_browse-bin%3A12035945011%2Cp_n_feature_four_browse-bin%3A9697950011

Realistically though, for the budget of the i7 option you linked, you could have an actual 'gaming' laptop.
Skylake i5 + GeForce 940MX
https://www.amazon.com/Lenovo-Ideapad-510-GeForce-80SR002SUS/dp/B01FJFN2DC/ref=sr_1_5?s=pc&ie=UTF8&qid=1495576277&sr=1-5&refinements=p_n_feature_four_browse-bin%3A2289793011%2Cp_n_operating_system_browse-bin%3A12035945011%2Cp_n_feature_seven_browse-bin%3A3012497011
OR
https://www.amazon.com/Acer-Aspire-E5-574G-54Y2-15-6-inch-Windows/dp/B01LYIDNVH/ref=sr_1_6?s=pc&ie=UTF8&qid=1495576277&sr=1-6&refinements=p_n_feature_four_browse-bin%3A2289793011%2Cp_n_operating_system_browse-bin%3A12035945011%2Cp_n_feature_seven_browse-bin%3A3012497011

Admittedly, not the best GPU in the world - but should be a powerhouse for what you want to use it for.
 
The 17.3" laptop with the i7-7500u and Intel HD 620 would be decent enough to play the Sims 4 with reasonable performance. It is the most demanding game of the three. The other laptop with the Pentium N3540 should be avoided; you will only get decent performance using the lowest settings and lowest resolution that the Sims 4 supports.

Buy one of the two laptops recommended above the has dedicated nVidia 940mx graphics chip which costs less than the 17.3" HP laptop that costs more, but only has the integrated Intel HD 620 graphics core which is much less powerful.