http://imgur.com/7wJZ1Ga, here are my current computers specs.
I am not too sure if I should upgrade the video card or just buy a new computer. I have about $200(possibly more) to throw at a new computer or upgrades.
I would seriously consider getting a newer system. Did you have a budget for this upgrade/build?
Here's a good upgrade, IMHO for little $:
[url=http://pcpartpicker.com/p/RECZ]PCPartPicker part list[/url] / [url=http://pcpartpicker.com/p/RECZ/by_merchant/]Price breakdown by merchant[/url] / [url=http://pcpartpicker.com/p/RECZ/benchmarks/]Benchmarks[/url]
[b]Total:[/b] $279.18 [i](Prices include shipping, taxes, and discounts when available.)[/i] [i](Generated by PCPartPicker 2013-04-19 03:53 EDT-0400)[/i]
Obviously I can change parts to fit your needs, but this would do well for light gaming and office work.
Well it's better than what he currently has. Of coarse it's easier to save up and get a better gaming system, which would be the best option, but if the OP wants to buy now with a low budget he could do it with what I suggested. Of coarse it's not the best out there, but for the $, it is about the best that you can get for now. I would rather recommend a Ph II x4 965 w/7850 or 7770 GPU and 8 gb's of DDR3. This kind of build would be around $400-500 or so, like below:
[url=http://pcpartpicker.com/p/RN5a]PCPartPicker part list[/url] / [url=http://pcpartpicker.com/p/RN5a/by_merchant/]Price breakdown by merchant[/url] / [url=http://pcpartpicker.com/p/RN5a/benchmarks/]Benchmarks[/url]
[b]CPU:[/b] [url=http://pcpartpicker.com/part/amd-cpu-hdz965fbgmbox]AMD Phenom II X4 965 Black 3.4GHz Quad-Core Processor[/url] ($94.99 @ Newegg)
[b]Total:[/b] $438.18 [i](Prices include shipping, taxes, and discounts when available.)[/i] [i](Generated by PCPartPicker 2013-04-19 21:32 EDT-0400)[/i]
I would strongly advise you to say up at least around $800-1000 (preferably around the $1200 range so you can get a monitor as well), because I'd rather wait a bit and get a strong system than an entry-level system for instant gratification. What's your income like? How long will it take you to get a decent amount of money?
If this is impossible, then consider other options of course.
Taking into consideration the fact that you're considering uprading vs buying a new system, this will give you the ability to upgrade in the future. The APU will get games running, but this system should last a bit longer. This is a great price for a decent machine. Not everyone needs a 1200 dollar gaming rig