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Video Video: McAfee founder wanted by police Startup Square battles payment giants Clinton foundation to tackle health disparities Follow Reuters Facebook Twitter RSS YouTube Read Petraeus scandal widens, snares U.S. commander in Afghanistan 3:19pm EST Three women intertwine in downfall of David Petraeus 12 Nov 2012 Iran unveils new missile systems on second day of drills 8:23am EST Special Report: How a vicious circle of self-interest sank a California city 7:58am EST Software pioneer McAfee says framed for murder in Belize 10:36am EST Discussed 215 After Obama win, U.S. backs new U.N. arms treaty talks 168 Obama plans ”fiscal cliff” statement as showdown looms 113 Republicans say deal can be done on ”fiscal cliff” Sponsored Links Microsoft shares fall after departure of key executive Tweet Share this Email Print Related News Microsoft's Windows head, once a possible CEO, exits 8:32am EST Microsoft's Surface tablet has "modest" start: Ballmer Mon, Nov 12 2012 UPDATE 2-AT&T's Nokia Windows phones priced to undercut rivals Tue, Nov 6 2012 Windows Phone sales to "ramp quickly": Microsoft CEO Mon, Nov 5 2012 Microsoft vs Google trial raises concerns over secrecy Fri, Nov 2 2012 Analysis & Opinion AOL: Down so long, itâ€™s starting to look up Essential reading: Looming capital gains tax hike motivates owners to sell, and more Related Topics Tech » Hot Stocks » Asian Markets » Media » By Sarah McBride SAN FRANCISCO | Tue Nov 13, 2012 2:19pm EST SAN FRANCISCO (Reuters) - Shares of Microsoft Corp MSOFT.O slid on Tuesday after the surprise departure of a key executive, who analysts said marks the loss of the driving force behind the company's biggest product. The shares were down 2.8 percent in afternoon at $27.21. Microsoft on Monday night announced the departure of Steve Sinofsky, a 23-year veteran of the company and head of its flagship Windows unit, just two weeks after launching the Windows 8 operating system. Analysts fear that Chief Executive Steve Ballmer is driving out talent just as the company needs it most. "Sinofsky may have ruled the kingdom with an iron fist, but he performed amazingly well in rescuing Windows following Vista," Wells Fargo analysts said in a research note on Tuesday, referring to Microsoft's previous operating system. "While we think Windows 8 and Surface have promise, there is still a ton of work ahead to catch iOS and Android." Apple AAPL.o and Google (GOOG.O) are seen as holding the lead for systems for mobile computing, a huge growth driver. Ballmer has replaced the heads of Microsoft's five main operating units in the past four years. Colin Gillis, an analyst at BGC Financial, said that while he generally has applauded bringing in new blood, "in this case I don't applaud it. "This is a negative. If I was the CEO, I would have kept him," he added. Ballmer may have been unhappy with Sinofsky's ability to work with other business units, or the pace of progress under him, analysts said. Sinofsky's abrasive management style may also have contributed to his departure, analysts said. Microsoft on Monday named two executives who are relatively unknown outside of technology circles to assume Sinofsky's responsibilities, something that analysts said could also be dragging on the stock. Julie Larson-Green will head the Windows hardware and software division, while Tami Reller will remain chief financial officer of the Windows unit and assume responsibility for the business of Windows. In a statement issued Monday night, Ballmer said it was "imperative that we continue to drive alignment across all Microsoft teams, and have more integrated and rapid development cycles for our offerings." (Reporting By Sarah McBride; Editing by Leslie Adler) Tech Hot Stocks Asian Markets Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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