CPU is good enough for now. RAM is low but workable. Few current games use more than 2-3 GB RAM, so if you keep the amount of background processes low, you can make do. GPU is terrible, even for current games. Upgrade to a budget GTX 600-series or better and you'll play current games pretty well. Upgrade to 8 GB RAM and you'll be good for perhaps games released 3-4 years from now.
I have a few years old GTX 460 and it can run current games at medium settings most of the time. I'm looking to upgrade soon though, not because I absolutely need it, but because I like high framerates and tons of antialiasing. How much power you need to be able to "game" on a PC is also entirely dependent on how high standards you have. If you are fine with playing PC games at the same graphics level as PS3 and XB360 outputs (or PS4/XBO from now on), you don't need to spend a lot on your PC upgrades at all.
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