What computer parts do I need to make this Desktop a gaming capable computer under 1,000 dollars?

I have a Acer dekstop and the specs are below.

processor: Intel(R) Celeron(R) CPU J1900 @ 1.99GHz
Manufacturer:Intel
Speed:2.0 GHz
Number of Cores:4
Video Card:Intel(R) HD Graphics
Manufacturer:Intel
Chipset:Intel(R) HD Graphics
Dedicated Memory:32 MB
Total Memory:1.8 GB
Memory:4.0 GB
Operating System:Microsoft Windows 8 (build 9200), 64-bit
Service Pack:0
Size:64 Bit
Edition:Basic
Display Maximum Resolution1600 x 900
DVDHL-DT-ST DVDRAM GHB0N
CDHL-DT-ST DVDRAM GHB0N
Drive
Size:914.9 GB
Free: 848.9 GB

I would like to be able to play MineCraft or any other game with little to no lag. Please tell me what needs to be upgraded to play pretty big games like Skyrim with little to lag under 1,000 dollars.

$685 if you can afford it: http://pcpartpicker.com/p/3KVZs
feel free to edit it to your needs. I suggest you keep your current drive though