Selfhosted
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Maybe don't try to market them as gaming PCs and just market them as great workstation PCs. Also, it depends on the market and your inventory imports. If your market is people who can afford current Gen laptops, they will not like your PCs. If you market them as home theater media streaming PCs for those who want something better than a firestick, then it will make a better selling point. Either way, if you have a steady supply of these low-end PCs, then think about multiple markets instead of limiting your client base to just cheap gaming PCs. There is so much more a computer can be. Do some market research on your local or online markets and make the PCs capable of solving their needs.
I tried doing such market analysis and it did seem that the low end gaming market was filled with overpriced stuff that I could easily undercut with apparently even some semi professional sellers present.
OK, I understand your idea. However, I will have to throw some cold water on you. You did a market analysis, and you saw the margins for low-end gaming PCs were too high. However, what you didn't do is market analysis on the clients. You half ased it and got burned. From my experience, customers do not do much research or think logically about what they spend their money on. It's true that people will most likely make bad financial decisions. They will see your lower priced PCs and overthink it. They will believe that the lower priced stuff is also lower quality and a worse deal. There is a range in which they believe a PC should cost, and by undercutting the competition, you estranged your client base. On the other hand, presentation and words matter a lot to people and the algorithms(search engine optimizers). They don't care about acronyms or technical words. If you look at how Apple and other giant tech brands marker their technology, you will find that specs take a back seat. On the flip side, the experience and capabilities take center stage. Making your clients feel welcomed and meeting their desires without accidentally coming off as "cheap garbage" is a tricky balancing act.
If you don't want to do this type of marketing and selling, then just make the PCs work for you instead.