Yes, it will. I won't recommend investing in an upgraded INTERNAL sound card. That would be a massive waste.
The previous BMX suggestion for surround headphones isn't a bad idea. I use my Senn's HD600 most of the time on my desktop set, while my JBL LSR2325p studio monitors remain turned off.
I don't recommend AudioEngine speakers, as they neither measure nor could you do better for a price, like Edifier.
I listened to AT-ATH-m50 headphones and did like the sound, not even a little bit.
I also don't recommend any Logitech speakers, as, again - you could do much better for money. Don't chase 5.1 surround at this budget - you'd end up with a crappy 5.1 or a decent 2.0 or 2.1
For the upgraded option, if you are willing to up the budget, I'd strongly recommend these: