Boss Roberto Mancini admitted it was a worse campaign than last season because "we got less points."
"This was a difficult group and after we lead 2-1 at Madrid in the opening game then got beat it all went badly.
"Dortmund and Madrid deserve to go through because they were better than us.
As to whether results such as this could cost his his job as with another manager, Mancini refused to countenance his position was under threat.
"It is important as team to win the Champions league but is crazy too win it after two years.
"It took ten years before Chelsea won it and they had Lampard and Terry, so we need to improve the team as there are better teams than us in Champions League."
As to possible qualification to the Europa League it is important to the club, perhaps not in the "early stages but certainly when the final can be reached."