Mikel Arteta bemoaned Arsenal's mistakes handing Manchester City a significant psychological blow in the Premier League title race.
Pep Guardiola's champions battled to a 3-1 victory at Emirates Stadium to move ahead of Arsenal, who have played a game fewer, on goal difference at the top-flight summit.
Kevin De Bruyne punished Takehiro Tomiyasu's errant pass to open the scoring before second-half goals for Jack Grealish and Erling Haaland ensured Bukayo Saka's first-half equalising penalty would prove irrelevant.
Manager Arteta, who coached City under Guardiola before taking the Arsenal role, acknowledged the Gunners were punished for their mistake-laden display in north London.
"We lost it, it was an incredible battle against two teams and we had them - but we gave them the goals," Arteta, who has lost eight of nine games against Guardiola in all competitions, told Amazon Prime Video.
"We had them in big moments, but in the big moments they were better than us. We were really imprecise, we put ourselves in trouble, in certain areas of the pitch we overplayed and we got punished.
"We had three big chances but didn't put them away and that was the difference. To beat them we have to be over our level because they are such a good team.
"The atmosphere and performance was really good, if you take away the way we gave them three goals."
Despite defeat, Arteta says the performance only served to further his belief Arsenal can claim their first title since the 2003-04 'Invincibles' campaign.
"I have more belief than I had before the game, with the performance and the level the team put in against City," he added to BBC Sport.
"They wanted to play a different game than the one we played and with the crowd we have we can do it.
"They still have it [the belief], I can sense it. They feel they can do it."
City had just 36 per cent possession in the victory, the lowest figure on the ball in a league game for a team managed by Guardiola in his top-flight managerial career.
While dominating possession, Arsenal's only shot on target in the game came from Saka's penalty after Eddie Nketiah was felled by Ederson.
Captain Martin Odegaard was far from his usual lofty standards and the Norway international lamented his side's performance at either end of the pitch.
"The game is decided in the boxes and we were not sharp enough in front of the goal and in our own [box] as well," Odegaard told Amazon Prime Video.
"They were better [in the boxes]. Apart from that, we played a good game, did many good things and had many good periods, but we have to be better in the boxes.
"It is football. Sometimes chances go in, sometimes not. But that is where we need to improve and be more clinical. And [we must] defend our box. That is not just about one player, but the whole team.
"As we have said all season, work hard and take it game by game. It is the same now.
"It is one game we have lost here and now we look to the next one.
"It was an unbelievable atmosphere and we are so grateful to everyone who came here and made the game special. We will work hard to give them something to make them happy about."
After going three straight Premier League games without a win, Arsenal travel to play Aston Villa on Saturday.
France 37-23 Argentina: Les Bleus wrap up campaign with third win
France posted a comfortable 37-23 win over Argentina on Friday to make it three wins out of three tests at the Stade de France to conclude their Autumn Nations Series.
Having also beaten New Zealand and Japan in Paris this month, Fabien Galthie's side claimed four tries, including a superb solo effort from Louis Bielle-Biarrey, as they eased to victory against the Pumas.
The hosts led 30-9 at the break after Argentina's Julian Montoya and Juan Martin Gonzalez were both shown yellow cards in the first half, with Thomas Ramos slotting his third penalty of the game.
Tomas Albornoz made it 30-16 for Felipe Contepomi's visitors, but their hopes of a comeback were dashed as Bielle-Biarrey scored his fourth try in three games before Ramos made it 37-16.
Albornoz then cut the deficit to 37-23 with a two-pointer with nine minutes to play, but that wasn't enough to stop his side from falling to a defeat.
"We knew it was going to be an 80-minute game. We saw last week how Argentina went all the way against a good Irish team," France lock Emmanuel Meafou told TNT Sports.
"We are happy with the win. We have three from three [in the autumn] and we will look to build on that in the Six Nations next year."
Plymouth Argyle 2-2 Watford: Two-goal Gray rescues point for Rooney's side
Andre Gray scored twice against his former club to salvage a point for struggling Plymouth Argyle as they drew 2-2 with Watford on Friday.
Gray curled in an equaliser in the sixth minute of second-half stoppage time to seal a crucial point for Wayne Rooney's side in their bid for survival in the Championship.
The visitors made a quick start at Home Park when Ivorian striker Vakoun Bayo bundled in a cross from Yasser Larouci only eight minutes in.
Plymouth did, however, equalise against the run of play in the 23rd minute when Lewis Gibson's long ball into the box was met with a spectacular volley from Gray.
Watford regained the lead before the break when Imran Louza's free-kick was knocked back by Mattie Pollock, with centre-back Ryan Porteous on hand to steer the ball home.
But just as it looked like Watford would go home with all three points, Gray picked up the ball on the edge of the area and fired home a stunning effort beyond Daniel Bachmann.
Tom Cleverley's Watford sit in fifth place and trail leaders Sunderland by five points, while Plymouth are 17th with 17 points from 16 matches.
Bayern Munich 3-0 Augsburg: Hat-trick hero Kane smashes Bundesliga record
Harry Kane scored a hat-trick to become the quickest player to score 50 Bundesliga goals as Bayern Munich comfortably dispatched Augsburg 3-0 on Friday.
Kane opened the scoring in the 63rd with a penalty before netting a quickfire double in second-half stoppage time to smash the record previously held by Erling Haaland.
Despite controlling the early possession, Bayern were unable to make their dominance count, with Nediljko Labrovic rarely troubled in the opening 45 minutes.
The hosts maintained their dominance after the interval, with Leon Goretzka's looped header grazing the crossbar before Jamal Musiala went close soon after.
However, Bayern were awarded a penalty after a lengthy VAR review saw Mads Pedersen penalised for handling the ball, with Kane stepping up to score from 12 yards.
The England captain grabbed his second of the game in the third-minute of stoppage time following another VAR review which saw Keven Schlotterbeck sent off after tripping Kane inside the box.
Kane sent Labrovic the wrong way but was not to be denied a fourth treble of the season, brilliantly taking down Goretzka's searching ball before heading the ball home.
Data Debrief: HurriKane
Kane has now scored 50 Bundesliga goals in 43 matches. Before him, Haaland was the quickest player to reach 50 Bundesliga goals, having done so in 50 appearances in the competition for Borussia Dortmund.
He is also the quickest to reach that total for Bayern by some distance. Kane has reached that tally quicker than the likes of Gerd Muller (83 games), Mario Gomez (71 games), Roy Makaay (67 games) and Robert Lewandowski (64 games).
10 of Kane’s goals have come from penalties, while 32 of them have been with his right foot, nine with his left and nine with his head.
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