Gates turns over reins of his empire.

In a surprise announcement, Bill Gates said Thursday that he will step down as Microsoft chief executive and hand over the reins to longtime friend and company president Steve Ballmer. Gates, 44, said he will remain as chairman and fill a new post created for himself: chief software architect. He also said in a statement that Ballmer will become a member of the Microsoft board of directors Jan. 27. Although Gates_ decision to hand the CEO duties to Ballmer had long been anticipated, the timing of the announcement was not expected. Gates waited until after the completion of Windows 2000, which will ship next month, before making the change. The changing of the guard is taking place at a tumultuous time for Microsoft. Just Wednesday, news leaked that the Department of Justice is proposing a breakup of Microsoft to help resolve the antitrust case pending against the company. Those who know Gates say it would be a mistake to assume that he is abandoning the company he founded in its time of need, believing that he will continue working behind the scenes to thwart his antagonists. At the very least, however, the end of his tenure as chief executive is of much symbolic value to those who have witnessed the astounding ascent of Microsoft and technology in general.