Fernandinho opened the scoring for City after the hosts failed to properly clear a corner, but Wilfried Bony levelled the score just before the break.
More poor defending allowed Yaya Toure and Aleksandar Kolarov to put Manchester City back in front by the 66th minute, making Bony's late goal a mere consolation.
Wayne Routledge lost possession for Kolarov's goal, City's third, with the Serbian racing on goal and lashing a shot through Gerhard Tremmel, to Laudrup's chagrin.
"If you concede three goals to a great team like this it's very difficult to get something (from the game)," he said.
"First half, in terms of playing, (we were) excellent. Even going (a goal) down we continued creating chances, then coming back, being on top and getting the equaliser before half-time gives you even more confidence.
"Even if you feel that you're in control or on top you always have to be careful because in a split second they can just turn a game, that’s what happened with the goal of Toure, it was a great goal even with the deflection off Ashley (Williams).
"And the third goal really hurts because it was a goal we could have done much more in different parts of the pitch."
Bony struck his second goal of the game in the closing minutes but the Dane conceded it was too little too late from his side who slipped to their ninth league defeat of the season.
"Being 3-1 down to a team like this and its really uphill," he added. "We got a late goal but it was too late.
"Had it been five minutes earlier maybe you never know.
"I think you have to try and find the positive things, as long as we see the team in confidence that’s important to me. I'm sure the points will come."
