I need help, upgrading my tower for gaming for under $500?

Before I start I'm just going to say that no gaming console beats a computer and I already have consoles.

So I'm on a very tight budget and want to spend as little as possible, I have no idea what I need and it would be great to get the opinion of someone who has upgraded their PC for gaming, my tower isn't a gaming PC for starters but it does handle several games very well and was made for multi-tasking, my tower is a Gateway DX4860-UB32P, I have plenty of memory, 1 TB hard drive, and 6 GB RAM, it has Intel HD graphics, Intel Core i3 processor 2120, and windows 64 bit if that even matters.

with those installed what will I need to make this a gaming tower for under $500?, or what is one item I can add to it to make its performance better?, some games currently run choppy like The Witcher 2, like the frame rate is slow and it takes a minute for the camera to catch up.

and please if you list parts can you explain to me exactly which parts i would need and would work on my computer?, I have no idea what I need

Greatly appreciated in advance

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