You would want to play at lower resolution 720p and low-medium settings (depending on game) to get decent framerates. Typically if you want to play latest games you get a decent CPU and a dedicated GPU.
This would be more ideal for gaming at 1080p. $500 gaming PC doesn't really have the budget for an SSD. And of course you'd have to sacrifice your good (great) PSU and motherboard.
PCPartPicker part list:
https://pcpartpicker.com/list/7bJ3cc
Price breakdown by merchant: https://pcpartpicker.com/list/7bJ3cc/by_merchant/
CPU: AMD - Ryzen 3 1200 3.1GHz Quad-Core Processor ($109.00 @ Amazon)
Motherboard: ASRock - AB350M Micro ATX AM4 Motherboard ($59.99 @ Newegg)
Memory: Corsair - Vengeance LPX 8GB (2 x 4GB) DDR4-2666 Memory ($109.99 @ Newegg)
Storage: Seagate - Barracuda 2TB 3.5" 7200RPM Internal Hard Drive ($59.89 @ OutletPC)
Video Card: Zotac - GeForce GTX 1050 2GB Mini Video Card ($139.88 @ OutletPC)
Case: Phanteks - ECLIPSE P400 TEMPERED GLASS ATX Mid Tower Case ($59.99 @ Amazon)
Power Supply: Corsair - CX (2017) 450W 80+ Bronze Certified ATX Power Supply ($44.99 @ Amazon)
Total: $583.73
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2018-01-31 22:38 EST-0500