Swail became the first seed to fall after letting slip a 5-4 overnight lead against Joe Perry, who had trailed despite recording two century breaks in the opening session.
But it was only a minor upset as world number 27 Perry has secured a place in the top 16 for next season after a fine campaign in which he reached the final of the European Open in Malta.
Perry took today’s first four frames helped by contributions of 78, 49 and 66 before the Ulsterman pulled one back with an 82.
There was to be no comeback for Swail in the manner of his amazing second-round success over Mark Williams last year, however, for Perry clinched a meeting with Peter Ebdon or Michael Judge by taking the next two frames.
‘‘I’m well pleased with my performance,’’ said the 26-year-old from Chatteris.
‘‘I played really well last night when I out-scored Joe and just needed to keep my composure today.
‘‘If I play like that in the next round and score heavily again I’ll take some beating because I know I can compete with the best players now.’’
Swail admitted he had no answer to the form Perry produced as his terrific run in Sheffield came to an end.
‘‘I always tend to struggle in the first round here and usually I manage to get over it, but not this time,’’ said the 32-year-old.
‘‘I prepared well, practising for nine hours a day, and it’s very frustrating. I made so many mistakes and got punished for them.’’
Seven-times former champion Stephen Hendry opened his quest for the title by racing 6-1 ahead of 19-year-old Shaun Murphy, but the youngster gave himself some hope for tomorrow’s deciding session by reducing his arrears to 6-3.
1st rd: Joe Perry (Eng) bt (10) Joe Swail (NIrl) 10-6.
Frame scores (Perry first): 29-67 91-34 67-37 6-87 29-83 138-0 (134 break) 22-71 25-77 100-18 (100 break) 93-21 72-24 88-14 70-41 37-86 79-24 75-0
1st rd: (5) Stephen Hendry (Sco) leads Shaun Murphy (Eng) 6-3
Frame scores (Hendry first): 83-36 9-93 130-0 (130 break) 74-27 56-51 87-40 60-49 7-69 32-69