Is it worth upgrading this pc?

I wonder if i could change graphics card in this pc aswell. I dont know if a decent GPU will fit in this, i could take out the cd drive , i dont really know i am not so smart at pc's.

Another question is if this machine will run next gen games on a tv, if i buy a decent GPU with maybe 2-3 gb vram grdd5. I dont have to play on high or ultra but not low so it look shitty, then i rather buy a PS4

PC specs
-intel pentium dual CPU E2200 2.20 GHz
-intel Q35 express chipset family(i will replace this if i can)
-2gb memory (RAM) i will upgrade to 6-8
-windows 7
I will buy a ssd big enough for windows and a 1tb harddrive.

This PC is perfect to have in my living room it will be like a steam box.