Austria, who were undefeated in 10 qualifying games, were beaten 2-0 by old rivals Hungary in the opening match of Euro 2016 Group F on Tuesday.
The Hungarians, who only reached the finals through the playoffs, took the lead with a rare goal by forward Adam Szalai in the 63rd minute.
It his first at international level since October 2014.
Austria thought they had equalised soon after but Martin Hinteregger’s effort was disallowed for a foul by Aleksandar Dragovic who was sent off after receiving a second yellow card.
Substitute Zoltan Stieber secured victory three minutes from the end.
Bayern Munich star David Alaba smashed the post inside the first minute, but highly-touted Austria were denied by Hungary’s 40-year-old goalkeeper Gabor Kiraly to go in 0-0 at half-time in their Euro 2016 Group F opener.
The versatile Austrian captain has been tipped to be one of the standout performers in France but, while he impressed in the early stages, he failed to make a decisive contribution as Hungary took control of the Group F opener.
Austria coach Marcel Koller suggested the player’s versatility might be hurting him, saying that playing Alaba in the middle, when he plays at left back with Bayern Munich, might explain why he struggled to make the right sort of impact.
Hungary goalkeeper Kiraly, the oldest player ever to appear in a European Championship finals match, saved another low Alaba effort and Zlatko Junuzovic’s fiercely struck drive.