Japan beat New Zealand 14-12 in their Olympic Sevens clash at the Deodoro Stadium on Tuesday.
The Kiwis came into the tournament as one of the favourites to win the gold medal, but were brought down to earth by the unfancied Japanese.
New Zealand also suffered injuries to two key players, Sonny Bill Williams and Joe Webber.
Tries to Japan’s Teruya Goto and New Zealand’s Scott Curry saw the sides level at the break at 7-7.
Akira Ioane’s unconverted try put New Zealand in front in the second half, but Kameli Soejima’s try and Katsuyuki Sakai’s made it 14-12.
The Japanese then hung on to their lead to claim a famous win.