Upgrading my old PC to give my brother

[reach4thestars29]

My friend built me this PC in 2012 and I have recently upgraded to a new PC. My brother has always been interested in getting into PC gaming but he has never been able to afford a gaming rig. I want to give him this one but I need to make sure it at least outperforms his PS4. This is the current set up

Motherboard- Intel DP67DE (LGA1155)
CPU- Intel Core i5 2500k
Ram- 8GB DDR3
GPU- Geforce 560
PSU- 500w

The case of the GPU is cracked and the fan doesn't function right leading it to overheat in games. I figure this needs upgraded anyway. I was going to buy him a new flashy case (The one I'm using is damaged) and figured I'd upgrade the GPU. I'm thinking GTX 1060 but I don't know if I should go 3GB or 6GB and I don't know if it will fit in the motherboard. However, if I have to buy a new GPU, a new case, and a new motherboard I might not be able to justify the gift. Besides fitting the GPU in the motherboard is there anything else I need to consider about modernizing this PC for gaming again.

 

[clutchc]

That board should be fine with the GTX 1060. And if the 500W PSU is a good quality unit, it should be fine also. Short of your case situation, there should be nothing else to upgrade.
I have/had both the 3GB and 6GB versions of the GTX 1060. Very little (if any) difference in performance. If he games at 1080p/60 Hz, there's no reason not to get the 3GB. However, with games using more and more VRAM at Ultra settings, the 6GB version will give him smoother gaming using maxed out eye-candy settings.