Watson has admitted his disappointment that Pietersen will no longer feature on the world stage.
"I think it's a shame Kevin Pietersen is not playing international cricket anymore," he told BT Sport.
"He's always been one of my favourite players to watch. I love seeing him bat, the way he takes on the game. He's a world-class player, so for me it's sad that I won't see him again in international cricket and England will certainly miss his cricket ability.
"The tournament loses a bit for his absence, and he wasn't at the last one in Sri Lanka either. That he's missing from a tournament makes it poorer for that."
Pietersen has been appointed captain of the Delhi Daredevils for their Indian Premier League campaign.