I5 7400 is basically still ok for most game, especially if you plan only to get 60 FPS e.g. if your monitor refresh rate is only 60Hz.
There are some games e.g. BF1 which could be bottlenecked by your I5 7400.
If I were you, I would rather keep the system as it is along with the new GTX1080.
If you still want to upgrade there 2 main choices:
- maintaining your current platform ( mainboard, etc.): just buy an I7 7700 or 6700 (no K if you are not on Z mainboard, with k plus a good cpu cooler if you are on Z mainboard) <--- cheap
- move to newer platform. You have to replace the mainboard and processor e.g. to Ryzen 5 2600/2600x/7 2700/7 2700x or I7 8700k/I7 9700k/I5 8600k/9600k....etc. etc. <---expensive