But the departing coach is still proud of his side's performance in the semifinal and said a lesser team would have chucked in the towel.
The Highlanders lost 42-30 to the Lions at Ellis Park in Johannesburg, beaten by what Joseph acknowledged was a better side.
"We had our opportunities early on in the game to score some points but we didn't take them, while the Lions did,'' Joseph said.
"They went ahead and that meant we had to chase the game. It was a bit disappointing but the Lions played really well.''
He said the Lions forced turnovers on the Highlanders ball - a rare occurrence throughout the season - which perhaps rattled his side.
The Lions' big loose forwards stood tall and had the wood on their opposites, which gave the home team a roll-on.
Joseph did not want to use the travel and playing at altitude as an excuse and simply thought the Lions played very well.
But despite the loss and with it the failure to defend the Super rugby title the team won last year, Joseph said the side had nothing to be ashamed of.
"The boys showed the character right through the team. Many other sides would have given up, packed it in, but we didn't.
"That is the Highlanders way about brotherhood, character. The 23 guys selected and the guys back home playing for each other.''
Winger Patrick Osborne was taken from the field about midway through the first half with an ankle injury and Joseph said it appeared serious.
That forced Marty Banks to come on at first five-eighth and the backline was reshuffled with Matt Faddes going out on to the wing.
The Highlanders would have to wait around in Johannesburg for a couple of days, as the Lions would get the first flight to New Zealand for the final against the Hurricanes on Saturday night.
The Hurricanes beat the Chiefs 25-9 in a game where the Chiefs made too many sloppy errors against a Hurricanes side that was strong defensively.
The Hurricanes will host the final for the second year in a row and will want to go better than last year, when they lost to the Highlanders.
Members of the Highlanders would not arrive in Dunedin until Wednesday morning.
Joseph will now move to coaching the Japanese side, after six years with the Highlanders, which he admits have gone quickly.
"It is all over now. It's been a fast six years and has just flown by.
"But it's been great to have this opportunity to coach this team for six years. To be able to make Dunedin my home, and it still will be, and coach all the players and be part of a coaching team.
"The guys only get a couple of weeks off and they're into another competition. I'll just be reviewing the season and making sure we have the franchise in a good position for next season.''
Joseph is not a sentimental operator but it would have been good for the franchise to go back to the final this week.
But fairy tales do not always happen in sport and the Lions, who three years ago were not even in the competition, started strong and did not let up.
