"I don't think there have been a lot of credible alternatives to iTunes but Guitar Hero certainly has that potential," said Activision Blizzard CEO Bobby Kotick.
The executive also stated that a Guitar Hero online music platform was a "natural evolution" of the franchise, which has generated over $1 billion in revenue for the company.
The newly formed Activision Blizzard arose from a merger between Activision and Vivendi Games, which owns Universal Music. Kotick added that the music label could help the company create a venture which could successfully compete with iTunes.
Kotick and Vivendi chief executive Jean-Bernard Levy said that they look forward to a period of growth fueled by new lines of business like merchandising and licensing, and international expansion.
"We haven't really capitalised on those areas," said Mr Kotick. "We're at the very early stages of how to leverage [our intellectual property]."