The Magpies crashed out of the Champions League and Europe following their 2-1 defeat at the hands of AC Milan at St James’ Park.
Newcastle won only one of their six group games and were knocked out of Europe by a late winner against AC Milan.
Watson admitted that the European adventure ending early is disappointing, but stressed that Newcastle were not outplayed or obliterated by any of the teams, despite finishing bottom of their group.
He stressed that most of the games were decided by very fine margins and Newcastle were competitive against every team in the group.
The Newcastle legend said on BBC Radio Newcastle: “Of course, we are going to be disappointed, but we have not finished bottom of the group by being obliterated by people.
“We have finished bottom of the group where it has been really fine margins.
“The Paris thing was a really fine margin and tonight that save might have been the fine margin.”
Newcastle will now have to focus on an in-form Fulham side who will be visiting St. James’ Park on Saturday.
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