Newcastle lost far more than the NRL match against Melbourne on Saturday night with their skipper Kurt Gidley suffering a likely serious shoulder injury.
The Storm came home strongly in the second half of the AAMI Park clash to win 42-12, scoring seven tries and with captain Cameron Smith ontarget with each conversion.
The Knights started strongly and were well and truly in the hunt before losing their play-making leader.
Gidley, who was set to be named on Sunday in Australia's line-up to face the Kiwis at Skilled Stadium next Friday night, was forced off just before the halftime break.
He landed awkwardly when tackled by Storm halfback Cooper Cronk and immediately clutched at his left shoulder.
The 28-year-old tried to play on but couldn't and was assisted from the field.
It was reported on Fox Sports that he had dislocated his shoulder, which could also put the former NSW Origin skipper's ambitions on hold.
Following last round's loss to the Warriors the Storm were again under par, particularly in the first half as they pushed passes and made other uncharacteristic errors.
They still managed to hold a 18-12 halftime lead, scoring three tries to two.
No doubt on the end of a blast from coach Craig Bellamy, the home side lifted in the second half as Newcastle wilted.
They were also let down by too many errors and penalties at key moments in the game.
Melbourne's second-half tries were shared among Matt Duffie, Dane Nielsen, Billy Slater and Todd Lowrie.
Compounding the loss of Gidley, the Knights' in-form halfback Jarrod Mullen was put on report for a dangerous tackle on Kevin Proctor in the 32nd minute.
(B Champion M Duffie T Lowrie D Nielsen B Norrie A Quinn B Slater tries C Smith 7 goals) bt Newcastle Knights 12 (M Hilder A Uate tries K Gidley 2 goals) at AAMI Park. Referee: Jason Robinson, Chris James. Crowd: 9,460.
