I doubt the f2p killer instinct sold that many systems.  But whatever, this is the kind of argument that neither side will can prove and will just go nowhere.  So think what you want.  

The XBone Killer Instinct was not made by Rare.

If I recall correctly, most of the first person shooter talent of Rare had already left, they are the people who made the Timesplitters games who got bought by Crytek.
I doubt Nintendo wants Rare back, what they would probably would want is owning the Banjo ip.

They are a direct competitor, so obviously, yes, they hurt them, and they will continue to as long as they are in the business. It's just how economics works.

Nintendo hurts itself without need for external help.

Rare hurt themselves. Most of the key figures at the company had left or were on their way out when M$ bought Rare.

Overall though M$ has definitely had an impact on Nintendo since entering the market... the original Xbox relegated the GC to third place status, the first time ever that Nintendo came in last in a console generation (excluding the Dreamcast, which was D.O.A. before the GC and Xbox were even released.)

This past gen the Kinect took alot of momentum away from the Wii late in the generation, and now unless Nintendo can turn things around fast with the Wii U, they face another distant 3rd place finish behind the PS4 and XB1.

Rare isn't as great of a dev as people try to make them seem. They developed a lot of games and the quality between them has greatly varied. Around half of their games are either so so or poor, while the rest are either decent, good, or great games. There's a much higher percentage of quality with their later releases when developing for Nintendo than their earlier ones, and those are the ones the ones that are always brought up when people talk about them.

who cares about nintendo? they broke my heart.... nuts and bolds? u shitting me rare...

"Nintendo hurt Nintendo."

No, Nintendo actually demonstrated they didn't need Rare.

As much as they would hurt Sony if they were to acquire Naughty Dog, so yes.