Kotick also said the company, whose $10 billion merger with Vivendi's video game business closed on Wednesday, expects stiffer competition from traditional media companies like Time Warner Inc and Walt Disney Co.

While there were no concrete plans to launch a rival to Apple Inc's iTunes just yet, he said all the pieces were in place.

Blizzard makes the most popular subscription online game, "World of Warcraft," Vivendi owns the world's largest music company, Universal Music Group, and "Guitar Hero" lets gamers play plastic guitars along with music on television screens.

"When you think about the potential for what we will be able to do together, there have not been many viable alternatives to iTunes," Kotick said.

"If you're downloading a song to play on your 'Guitar Hero,' there's no reason why you can't download the performance also. So there's all kinds of things you can think about."

The creation of an iTunes rival would make Activision Blizzard the latest company to try to challenge Apple in the digital music market. Amazon.com Inc has also launched its own online music store.

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Posted at 08:47AM Jul 13, 2008 by Kevin P McAuliffe in Astound  |  Comments[0]