Wales' bid for a rare victory over New Zealand disappeared after the All Blacks delivered an imposing second-half display at the Millennium Stadium to win 19-12.
Fly-half Dan Carter, who overcame a calf muscle injury to play, booted 14 points while hooker Andrew Hore scored a 56th-minute try.
Wales relied on four penalties from Carter's opposite number Stephen Jones, yet New Zealand still have not lost in the fixture since 1953.
Carter is the player who continues to torment them like no other, taking his personal points tally against Wales to 106.
He is also now just two points short of setting a new All Blacks Test record of 968, overtaking his illustrious predecessor Andrew Mehrtens.
Carter left the pitch, though, with boos ringing in his ears after a high tackle on Wales scrum-half Martin Roberts that could yet attract the attention of the match citing commissioner.
Wales coach Warren Gatland believes decisions which went against his team proved costly.
Gatland believes the Carter was fortunate to escape censure following the high tackle.
He said: "The frustrating thing from our point of view was not getting some 50-50 calls.
"We're not asking for any favours, you just want some calls to go your way.
"It's trying to change referees' opinions about not wanting to referee an upset - referees don't want to be involved in upsets.
"We've got to keep playing positive rugby and win them over, so you feel like you are getting somewhere."
Asked what else contributed to the defeat, Gatland added on BBC2: "It's about learning to play at the highest level, making sure for 80 minutes that we switch on and nail critical moments.
"There are fine things as a team we hammer in at training but we must carry them into the game and keep developing."
Wales captain Ryan Jones said: "It was a fantastic Test, but we paid the price for a couple of errors in key moments.
"We didn't help ourselves; we were the makers of our own misfortune today - but at 80 minutes we were still in with a chance, and on another day it might have gone our way.
"I'm thoroughly enjoying my rugby again and it's good to be part of a special team.
Stephen Jones, who scored all Wales' points with four penalties, added on BBC2: "New Zealand are very clinical - they put us under a lot of pressure.
"From our perspective, a few errors allowed them to get on to the front foot. But we have to give them a lot of credit.
"I would love to have played in a game with a bit more width - but New Zealand are very well-organised defensively.
"We are bitterly disappointed we lost. It's the first game we've played in a long time, but we are going in the right direction.
"We keep improving and raising the bar and hope we'll get there."
Shane Williams added: "It was such a tough game; you don't get many opportunities against New Zealand and you have got to make them count.
"We felt we could win this game today and we came off the field thinking we should have. They're one of best teams in the world, and there's a reason for it."