The Gunners were humbled 3-0 on their own patch by Villa and manager Arteta felt that the loss was down to him.
He told Sky Sports: "First of all congratulations to Aston Villa for the way they played and the victory.
"After that, we performed below our standards and I have to say it's the first time I've seen us play and we weren't a team.
"I take full responsibility. We didn't start well enough, we got away with VAR for an offside situation but we lost all the races, the duels and we were sloppy on the ball. When we created chances we didn't hit the target. It's a really bad combination. We left spaces and on the counter we looked really vulnerable."
Arteta felt that Villa wanted the victory more than his side and suggested that Arsenal didn't play at the level required.
The Spanish coach said: "I didn't see the spirit for the first time - and it's totally my fault as that's why I'm here. Today I've not managed to get the team to play at the highest level like we need to every three days.
"I'm struggling to find the reason but obviously there was something there today. They wanted it more than us. If you can't defend your box, it's a really complicated way to win football matches."