Upgrade or Overclock

I just got into the beautiful world of pc gaming. Sold the ps3, 360, and soon, the ps4 is leaving. ANYWAY: I have a decent budget build:
Amd FX6300, EVGA GTX 760 2gig superclocked, 8gigs adata xpg v2 1600 ram, Gigabyte GA-78lmt, WD 1tb hdd, Corsair cxm 600w, Rosewill Galaxy-01.
I want to get a new motherboard and a better cpu. I've been looking at the fx-8350. But I really don't know what to get. Or should I get a new motherboard and a self contained water cooler and just overclock my cpu?
All I really use my computer for is gaming, youtube, and typical idiot stuff like facebook.
My main reason to upgrade/OC is Watch Dogs. It wants a 3.5ghz intel cpu or a 4.0 amd cpu.
Any help would be great, sorry if this is way to long.

You could overclock your fx6300 to 4.5 ghz easily.

I've tried watching overclocking videos, but I just get confused every time.
Would it be better to just get a water cooler, like a h100i, and a motherboard that can overclock, rather than buying all new parts? I feel like my current motherboard doesnt support overclocking well.

You're right, your current motherboard isn't the best for overclocking.  

Your original thought to upgrade the cpu and motherboard is going to be your best bet for a good performance increase.  

Here's my suggestion: http://pcpartpicker.com/p/mVBA

You didn't list your case, so make sure that the Hyper 212 cooler would fit before you buy it.

Those specs have been dismissed by the graphics TD.  He stated the actual requirements will not be as demanding.  Even if we go by those, the 3770 and 8350 were the recommended specs, with the minimums being C2Q or Phenom X4.  For Watch Dogs, you're fine.

My current case is the Rosewill Galaxy-01
Not the best case. but was on a tight budget, and had to get a kinda cheap case unfortunately. But its not that bad. came with 4 fans! haha
My question is (and if this a dumb question please forgive me) that cpu is 3.5ghz and turbos to 4.0ghz, mine right now is 3.5ghz and turbos to 4.1ghz. How would the 8320 be better?

Going to be honest, I'm not exactly sure what you said other then I'll be fine for watch dogs.