Arsenal manager Arsene Wenger stripped William Gallas of the captaincy at Eastlands - then saw his team stripped bare.
A wonder goal from Robinho after Stephen Ireland had made the breakthrough gave Manchester City the victory they deserved on the balance of play.
Substitute Daniel Sturridge completed a miserable day for Arsenal by scoring from the penalty spot in stoppage time.
Without Gallas at the back, the Gunners looked vulnerable and their title hopes look a distant dream after their fifth defeat in the league.
Gallas did not travel with the rest of the squad after making critical comments about the team in midweek and goalkeeper Manuel Almunia wore the armband instead.
The France defender questioned their fighting spirit and also spoke of squabbling behind the scenes.
It is understood he was omitted from the team as Wenger was dismayed by the player's comments.
Arsenal went into this match without the likes of Theo Walcott, Cesc Fabregas, Kolo Toure and Emmanuel Adebayor as well as Gallas and it showed.
City almost took the lead in the 27th minute after a flowing move, which was started by Shaun Wright-Phillips.
He sent Darius Vassell clear and Benjani Mwaruwari got a touch to his cross at the back post, only to deflect his effort wide.
Robin van Persie then needed brief treatment six minutes later after being left winded following a challenge from Vincent Kompany.
Arsenal almost took the lead from the free-kick with Joe Hart - who had made a quick recovery from an ankle injury - beating away Samir Nasri's shot.
The ball broke to Nicklas Bendtner and he cleverly hooked it back to Alex Song. He was clear on goal but sent his effort wide from close range.
Ireland then went on a surging run but there was no one on hand to help him out and Almunia mopped up with ease.
There was a tense, nervous edge to this game, which meant little entertainment for the supporters as half-time approached.
Benjani got on the end of a cross from Wright-Phillips in stoppage time but he sent his header wide.
Immediately afterwards Ireland took advantage of a mix-up between Gael Clichy and Mikael Silvestre to put the home side ahead.
He clipped the ball over Almunia to give City the boost they required going into the second half.
Arsenal were clearly rattled at going behind and Abou Diaby skipped forward in the 47th minute, only to fire wide of the post.
Four minutes later Van Persie saw his free-kick ruffle the side netting after Micah Richards had been penalised for a challenge on the Dutchman.
City, however, responded and extended their lead with a magnificent goal from Robinho in the 57th minute after some superb work from Wright-Phillips.
The England midfielder won the ball off Van Persie in the middle of the park before releasing a perfect through ball for Robinho.
The Brazilian showed a cool head as Almunia advanced to lob the ball over the goalkeeper for his ninth goal of the season.
This was now a test of character for Arsenal and Bendtner should have pulled a goal back four minutes later.
He latched on to a ball from substitute Aaron Ramsey but his weak shot was easily parried by Hart.
Robinho then sent a close-range header wide of the post before finding the next again only for his effort to be ruled out for offside.
Arsenal kept pushing forward and Denilson tried his luck in the 76th minute.
Robinho almost made it 3-0 three minutes later when he latched on to a ball from substitute Elano.
He took it around Almunia only for Djourou to clear his effort off the line.
Van Persie then found the net after clipping the ball out of Hart's hand but it was disallowed.
Sturridge completed the rout in stoppage time from the penalty spot after being upended by Johan Djourou to add to Arsenal's misery.
Teams:
Man City Hart, Zabaleta, Richards, Dunne, Garrido,Wright-Phillips, Ireland, Kompany, Vassell (Elano 73),Robinho (Hamann 82), Mwaruwari (Sturridge 88).
Subs Not Used: Schmeichel, Onuoha, Evans, Ben-Haim.
Goals: Ireland 45, Robinho 56, Sturridge 90 pen.
Arsenal Almunia, Hoyte (Ramsey 60), Djourou, Silvestre,Clichy, Nasri, Denilson, Song Billong, Diaby (Vela 69),Van Persie, Bendtner.
Subs Not Used: Fabianski, Wilshere, Gibbs, Lansbury, Simpson.
Booked: Song Billong.
Att: 44,878
Ref: Alan Wiley (Staffordshire).
