Bank of America Merrill Lynch is getting worried about the video gaming industry's holiday selling season.

The firm lowered its rating for both Electronic Arts and Activision Blizzard shares to neutral from buy, citing the crowded holiday slate and competition from "Fortnite."

On Thursday, EA shares fell nearly 10 percent after the company delayed its key "Battlefield V" game and lowered financial guidance for the year.

"While we expected investor optimism on new titles to build through Sept., we believe Electronic Arts' (EA) guidance cut will change that dynamic, with future concerns on unit sales or ASP discounting possible," analyst Justin Post said in a note to clients Friday entitled "More cautious as some key franchises continue to slump."