An injury-depleted Magic - without high-scoring guard Steven Gayle and forwards Gavin Smith and Steve Boonham - saw the Rockets edge ahead of them in EBL Division One with a crushing 20-point victory.
Jeff Jones' team now lie in third behind leaders Worthing and second-placed Reading and the coach admits overhauling their two rivals will be difficult.
"It is going to be tough to win the league now," he said. "But we have to regroup, stay focused and in the top three and stay in the mix for the play-offs. Then anything can happen."
Jones had been hoping for an instant response after Magic's National Trophy semi-final defeat to Reading last weekend.
But a combination of injuries and poor shooting meant a second consecutive defeat in Berkshire.
"We couldn't hit our backside with both hands in the first half," said a frustrated Jones.
"Injuries left us short and it was hard, but we started badly and dug ourselves a hole."
Steve Hasting, who top-scored for Magic with 18, was one of the few bright spots for Jones, who must now hope his injured personnel can bounce back for the season's run-in.
Hope
"Steve played really well for us - one of his best games," said Jones.
"As far as Gavin Smith goes he could be out for the season - with Gayle and Boonham we will just have to wait and hope for the best."
Magic's home game against West Herts on Saturday is the first of eight remaining league games.
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