The Gunners fell to a fourth straight away defeat in the Premier League against Sam Allardyce’s relegation battlers.
Arsenal’s 3-0 failure at Selhurst Park has put their push for a top-four finish in real jeopardy.
However, Wenger once again defended his team by claiming Palace simply won the key battles.
Arsene Wenger saw his Arsenal side fall to yet another defeat tonight
But he did admit it is also difficult to assess the game so soon after the drubbing.
"We lost too many duels and we paid for that,” Wenger said. “There is no obvious reason why. We prepared and everyone prepared well. It's difficult to explain just after the game.
"I don't think my players didn't want it, but we lost duels in decisive moments and that's how games are decided at this level.
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I understand our fans are disappointed and we all are deeply tonight
"I understand our fans are disappointed and we all are deeply tonight. It's very worrying and disappointing the way we lost the game.
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“Palace were sharp, they beat Chelsea the other day, and that shows they have quality.
"We are in a difficult position. The game tonight doesn't help.”