Austin faced the difficult challenge of Japan’s third seed Takamasa Anai in the -100kg category and failed to cause an upset as he exited the competition at the first stage.
And the 29-year-old admitted he was beaten by the better man as his battling performance failed to defeat the world champion from 2010 Anai.
He said: “I thought I had a good chance but on the day he was better. It was a good fight. He didn’t give me much room to move.
“He’s not a world champion for nothing so it was tough to meet him in the first round. It was a tough draw but it’s the Olympic Games.”
Austin’s exit means there are just three of the 14 British judokas left in the competition as teammate Gemma Gibbons reached the semi-finals of her -78kg category.
And the Brit was full of praise for the support of the home crowd as he eyes another shot at Olympic success in Rio 2016.
“They supported me just as they have done with all the British guys and girls. We’ve got one more guy on Friday so I’ll be here supporting him,” said Austin.
“Maybe I need a little bit more experience. My judo has come on so much and in another four years hopefully I’ll be in Rio.”