Asia is not Europe and playing in the sprawling continent is tougher than they thought, but it was invaluable experience as they prepare for the 2010 World Cup qualifiers where they will encounter similar conditions.

"We have learned a lot in the last couple of weeks, Asia is very difficult," admitted coach Graham Arnold after watching his team lose in a penalty shootout to defending champions Japan in the quarter-finals here on Saturday.

"The expectations I put on the team were semifinals minimum and so obviously it's below expectations.

"This is the toughest loss I have suffered in my coaching career, guaranteed," he added, knowing that it could also be the last defeat he experiences as the Australian coach with his job hanging by a thread.

"We have done a lot of work to get where we are and I think the players responded. Our form wasn't great in the first two games, but I thought we showed a huge improvement over the four games."

Despite being reduced to 10 men for the final 15 minutes of regulation time against Japan when Vince Grella was sent off for elbowing Naohiro Takahara, the Socceroos clung on to take the match to extra-time and penalties.

At the crunch, Harry Kewell and Lucas Neill, two of the team's most experienced players, were unable to convert their spot kicks.

What really took Australia by surprise was the gruelling hot and humid conditions in Asia, as well as the quality of the opposition.

"The main lessons are next time we qualify for the World Cup, it's not going to be as easy as we think," Kewell said.

"We're going to make sure we play 10 times better than what we proved at this Asian Cup.

"I think we'll take a different approach to Asia now. We've got a taste of it, we know what it's all about now."

Spain-based John Aloisi knows that the experience will serve them well on the road to South Africa.

"I think if we didn't play in this Asian Cup and went straight into the World Cup qualifiers, we'll probably get a big shock. Now we are sure about what we can expect," he said.

"Our players were not used to playing in these conditions but this is what we have to look forward to in the future."

Arnold voiced similar sentiments, saying it was prefect preparation for next years World Cup qualifiers, where Australia will be making their first appearance in the Asian qualifying campaign after defecting from Oceania.

"It's shown the players that the road ahead is going to be very difficult," he said.

"And it's also shown the people at home and Football Australia that we are going to have 12 World Cup qualifiers ... in conditions and surroundings like this when all of our players are going to be playing in Europe, so it's going to be very difficult."

Captain Mark Viduka, whose international future is up in the air, said the whole squad was disappointed, but praised them for showing character after being heavily criticised for their performances in their first two group games.

"Obviously, we are disappointed not to have won the match. I think everybody showed a lot of character to get to that stage (penalty shootout) after we went one man down," said the Newcastle striker.

"Considering all the circumstances, I think everybody is glad of it. It was a very good experience."