It took less than two minutes for the Citizens to show their attacking prowess against the Gunners. City countered after an Arsenal miscue in the final third and fed Sergio Aguero, but the newly minted record goal scorer went wide of the Arsenal goal.
City's Kevin De Bruyne continued his wonderful start to the season with the first goal of the match in the 19th minute. The Belgium international had his first shot saved by Petr Cech, but after combining on a quick one two with Fernandinho, City's number seventeen drove the ball across goal and past a diving Cech.
City manager Pep Guardiola threw his hands up in frustration and madness after Raheem Sterling shanked a cross on a two on one scoring opportunity for the Citizens. Sterling and Leroy Sane had broke into a two on one, with only Laurent Koscienly and Cech to beat. Sterling's low cross went miles in front of Sane, and City's manager Guardiola did not hide his frustration on the sideline.
Arsenal were lucky to still be in the match at halftime, as City had multiple clear cut chances go by the wayside against an over-attacking Arsene Wenger team. The Gunners' best chance of the first half came in injury time, when a low driven shot by Aaron Ramsey was saved by Ederson.
From the spot
The Citizens doubled their lead just three minutes into the second half, as Aguero put the ball off the right post from the penalty spot to give his side the 2-0 lead. City were awarded a penalty after Sterling was taken to the ground by an overbearing Nacho Monreal.
Arsenal got one back in the 65th minute when substitute Alexandre Lacazette slotted the ball past Ederson and into the back of the City net. Lacazette had come on for Francis Coquelin, allowing Arsenal to add the goal scorer by taking off a defensive midfielder.
City had a two great chance in the 68th minute, first when Sane's volley was blocked and on the ensuing corner where Cech had to make a goal-line diving save to keep out Gabriel Jesus.
Jesus, who replaced Aguero, would find the back of the net in the 75th minute to restore the hosts' two goal advantage. David Silva was played into the box, offside, but the flag stayed down and he crossed the ball across to the wide open Brazilian to tap home.
Wenger will be furious at both his players, who stopped playing assuming an offside call was coming, and the linesman, who missed a blatant offside call.