The i5 isnt really a bad CPU, its quite good actually for being a low wattage CPU, but its not really designed for performance more so battery life (due to the low wattage).
Depending on what you are doing it probably will be sufficient but having a M letter i5 CPU (like a i5 4200M etc) would offer you better performance, the U version might struggle a bit in more intensive tasks unlike M version though it wont have much problem in light tasks and should be decent to good in "medium" level tasks as well. So its not really bad but having a M version or a i7 would be better (unless you are more interested in battery life)
And the GPU should allow for medium settings in most games (depending on what resolution the laptop is, guessing its 1333x768)