The Gunners have lost each of their opening three league games without scoring a single goal and are now rooted to the bottom of the Premier League table.
Arsenal have a chance to get their season back on track when they host Norwich at the Emirates on Saturday and the pressure is on the side to record a good result and performance.
Many fans are irate at the way Arsenal have played at the start of the season, but Nicholas believes even the players should be angry at the way they have let themselves down in the opening three games.
He feels the players should see Norwich as an opportunity to put things right and they must comprehensively beat the Canaries at home on Saturday.
However, the former Gunner conceded that the fans could go nuclear inside the stadium if Arsenal fail to beat Norwich.
Nicholas said on the Where’s Jeff podcast: “I would have to generally think that there has to be a sense of anger within Arsenal at the moment.
“Not just coming from the stands but within the dressing room that they have to start standing up to it and say that it has been an embarrassment, we need to sort it out and this is our opportunity.
“No disrespect to Norwich, they are an attack-minded side, they let in goals and I know Arsenal have been letting them in too but I would expect Arsenal to really roll them over.
“If they don’t then I don’t know what the outcome will be for [Mikel] Arteta with the fans in particular.
“They will explode if they don’t get a performance from this squad.”
It is unclear how long Arsenal’s owners will give Arteta if the side’s results do not improve soon.
