The Gunners suffered a surprise 2-1 defeat to the Hornets at Emirates Stadium on Tuesday evening.
That result saw them slip to third in the Premier League table, nine points adrift of leaders Chelsea.
Another title challenge is threatening to crumble in north London, with a 14-year wait for the top-flight crown set to be extended.
Wright fears that will be the case, with a sorry display in midweek exposing Arsenal’s flaws.
The legendary striker was particularly scathing in his assessment of French forward Giroud, who was carrying a knock going into the fixture.
He told the Sun Football Podcast: “Was he injured or wasn’t he injured?
“Two minutes into the game he signalled that he wasn’t right. He knew that his ankle wasn’t quite right.
"He started the game and Watford were up for it and maybe he felt like he wasn't as up for it as he should have been because he signalled to come off.
"It was the most pitiful 45 minutes I've ever seen from a centre-forward and he was rightly taken off.
"I would be absolutely livid with him because it's all about the start."
Wright added on the collective issues at Arsenal: “That was as bad as a first 45 minutes I’ve seen. It’s inexcusable.
“The performances are showing that the team are not accountable.
“It’s all about the start and Arsenal have nor started well for so many games now. I’m not expecting Arsenal to start well.
“I don’t feel they get themselves up for certain games, there’s not enough accountability. And it’s just exactly what happens every season at this stage.”