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He played junior hockey for the Sudbury Wolves and the Sault Ste. Marie Greyhounds from 1976 to 1978 and was chosen 58th overall by the Colorado Rockies in the 1978 NHL Amateur Draft. Unfortunately, a knee injury in the 1978 training camp kept Watson out of the entire 1978-79 season.
Watson turned pro in 1979-80 with the Fort Worth Texans and alsp played 5 games for the Rockies. The next season was about the same, except that he played 13 NHL games. However, the entire 1981-82 season was spent in Fort Worth without any NHL time.
Watson then joined the Carolina Thunderbirds of the Atlantic Coast Hockey League and was an immediate hit there. He led the league in scoring in 1982-83 and was a first all-star. Watson played in Carolina until his retirement in 1986.